Does technology destroy jobs

Infoposter_V1The argument over whether technology creates or destroys jobs has been going on for as long as I can remember.

Only yesterday John Naughton, in an article entitled “We are ignoring the new machine age at our peril“, worried about the impact of self driving cars and other technology on the future of employment. Naughton argued that there are “radical discontinuities that nobody could have anticipated”, driven by “combinatorial” effects of different technology trends coming together. These, he siad, include: “the near-infinite computing power provided by Moore’s law; precise digital mapping; GPS; developments in laser and infrared sensor technology; and machine-learning algorithms plus the availability of massive data-sets on which to train them.”

He warned the outcome could be “that vast swaths of human activity – and employment – which were hitherto regarded as beyond the reach of “intelligent” machines may now be susceptible to automation.” he went on to quote a studyby  Dr Carl Benedikt Frey and Michael Osborne, two researchers at the Martin School in Oxford,T heir report, The Future of Employment: How Susceptible Are Jobs to Computerisation?,  estimates the probability of computerisation for 702 detailed occupations, based on US government classifications of those occupations.  About 47% of total US employment, they conclude, is at risk from technologies now operational in laboratories and in the field.

However a study entitled ‘Are ICT Displacing Workers? Evidence from Seven European Countries‘ by Smaranda Pantea, Federico Biagi and Anna Sabadash from the Institute of Prospective Technologies in Seville comes up with a different answer. Looking at micro data ins even European countries for companies in the manufacturing, ICT producing and service sector the study found “a non-significant relationship between employment growth and ICT intensity among ICT-using firms.: The authors say: “Since our estimates mainly capture the “substitution” effects of ICT on employment (i.e. those due to ICT substituting for some type of labour and to ICT increasing productivity and hence reducing demand for inputs, for constant values of output), our results indicate that these effects are statistically insignificant.”

Of course this study and the American study are not directly comparable. They looked at different things and used different methodologies. One conclusion might be that whilst technology is not being directly substituted for overall employment, it is changing the nature of jobs available. Some labour market studies (for instance based on the US O*Net surveys) have suggested that what is happening is a bifurcation of labour, with an increasing number of high qualified jobs and of low skilled (and consequently low paid) service sector jobs. And of course another impact may be on the ;content’ and different skills required in different jobs. For instance our work in the construction industry through the Learning layers project suggests increasing adoption of technology is leading to the need for new (and higher) skills levels within what was traditionally seen as a lower skills sector. This has considerable implications for vocational education and training. ather than training for presents skills demands VET systems need to be looking at future skills. And by providing those future orein3eteds kills this could provide a workforce and society with the abilities and motivation to shape our use of technology in society, rather than as John Naughton fears that “we’re bound to lose this race against the machine” and in the course “enrich the corporations that own it.”

Professional identities and Communities of Practice

Technology Enhanced Learning, at least form a research perspective, has always tended to be dominated by the education sector. Coming from a background in vocational education and training, I was always more interested in how technology could be used to enhance learning in work and in particular informal learning in Small and Medium Enterprises.

Much early work in this area, at least in Europe was driven by a serious of assumptions. We were moving towards a knowledge economy (remarkable how quiet that has gone since the economic crash) and future employment, productivity and profitability, required higher levels of skills and knowledge win the workplace.. Prior to the rise of the World Wide Web, this could be boosted by enhancing opportunities for individual learning through the development of instructional materials distributed on disc or CD ROM. Interestingly this lead to much innovative work on simulation, which tended to be forgotten with the move to the online environment offered by the World Wide Web.

One of the big assumptions was that what was holding back learning in enterprises was the cost of releasing employees for (formal) training. Thus all we had to do was link up universities, colleges and other training providers to enterprises through providing courses on the web and hey presto, the problem would be solved. Despite much effort, it didn’t really work. One of the reasons I suspect is that so much workplace knowledge is contextually specific and rooted in practice, and trainers and particularly learning technologists did not have that knowledge. Secondly it was often difficult to represent practice based knowledge in the more restricted learning environment of the web. A further issue was a failure to understand the relationship between learning nd professional development, work practice and professional (or occupational) identities. That latter issue is the subject on a paper entitled Facilitating professional identity formation and transformation through technology enhanced learning: the EmployID approach, submitted by my colleagues from the EmployID reject, Jenny Bimrose, Alan Brown, Teresa Holocher-Ertl, Barbara Kieslinger, Christine Kunzmann, Michael Prilla, Andreas P. Schmidt, and Carmen Wolf to the forthcoming ECTEL conference. Their key finding is that there is “a wide spectrum of how actual professional identity transformation processes take place so that an ICT-based approach will not be successful if it concentrates on prescribing processes of identity transformation; rather it should concentrate on key activities to support.” They go on to say that “ this is in line with recent approaches to supporting workplace learning, such as Kaschig et al. (2013) who have taken an activity-based approach to understanding and supporting collective knowledge development.”

The following short excerpt from the paper explains their understanding of processes of professional work identity formation:

“Professional work identities are restructured in a dynamic way when employees are challenged to cope with demands for flexibility, changing work situations and skill needs (Brown, 1997). The work activities of practitioners in Public Employment Services (PES) need to be trans- formed due to the changing nature of the labour market. As their roles change, so do their professional identities. Work identities are not just shaped by organisations and individuals, but also by work groups (Baruch and Winkelmann-Gleed, 2002) or communities of practice (Lave and Wenger 1991; Brown, 1997; Ibarra, 2003). PES practitioners in particular need to develop multi-dimensional (individual and collective) professional identities to cope with socio-economic and technological change (Kirpal, 2004). This shift is underpinned by the increased importance of communica-tions skills, a willingness to engage in learning and reflexivity, while reflection on experience over time may be particularly significant in the build-up of implicit or tacit knowledge as well as explicit knowledge (Eraut, 2000). At the individual level, emerging new demands and associated skills shifts generate a potential for conflict with traditional work orientations and associated values, norms, work ethics and work identity patterns of employees. One important focus for support are individuals’ strategies for dealing with such conflicts. While any identity formation process has to be realized by the individual, the process of acquiring a work identity also takes place within particular communities where socialization, interaction and learning are key elements. Therefore, supporting networks, of ‘new’ communities of practice (Lave, 1993; Wenger, 1998; Billett, 2007) and feedback from other practitioners are important aspects on which to focus.”

References

Baruch, Y. & Winkelmann-Gleed, A. (2002). Multiple commitments: a conceptual framework and empirical investigation in a Community Health Services Trust, British Journal of Management, Vol. 13, No. 4, pp. 337-357.

Billett, S. (2007). Exercising self: learning, work and identity. In: Brown, A.; Kirpal, S.; Rauner, F. (eds). Identities at work. Dordrecht: Springer, pp. 183-210.

Brown, A. (1997). A dynamic model of occupational identity formation. In: Brown, A. (ed.) Promoting Vocational Education and Training: European Perspectives. Tampere: University of Tampere, pp. 59-67.

Eraut, M. (2000). Non-formal Learning and Tacit Knowledge in Professional Work. British Journal of Educational Psychology, Vol. 70, No. 1, pp. 113 – 136.

Ibarra, H. (2003). Working Identity: Unconventional Strategies for Reinventing Your Career.Boston, MA: Harvard Business School Press.

Kaschig, A., Maier, R., Sandow, A., Lazoi, M., Schmidt, A., Barnes, S., Bimrose, J., Brown, A., Bradley, C., Kunzmann, C., Mazarakis, A. (2013). Organisational Learning from the Perspective of Knowledge Maturing Activities. IEEE Transactions on Learning Technol- ogies 6(2), pp. 158 – 176
Kirpal, S. (2004) “Researching work identities in a European context”, Career Development International, Vol. 9, No. 3, pp.199 – 221

Lave, J. (1993). The Practice of Learning. In S. Chaiklin and J. Lave (eds) Understanding Practice: Perspectives on Activity and Context, Cambridge: University of Cambridge Press.

Lave, J. , & Wenger, E. (1991). Situated learning. Legitimate peripheral participation. Cambridge, England: Cambridge University Press.

Wenger, E. (1998). Communities of practice: Learning, meaning, and identity. Cambridge: Cambridge University Press.

Thinking about a career developing apps?

Last week I wrote about projections of future demand for Science, Technology, Engineering and Maths (STEM – or in Germany – MINT) occupations. I suggested that predictions of skills shortages were overstated.

The same applies to computer programmers. According to the European Commission, “many vacancies for ICT practitioners cannot be filled, despite the high level of unemployment in Europe. While demand for employees with ICT skills is growing by around 3% a year, the number of graduates from computing sciences fell by 10% between 2006 and 2010.

If this trend continues, there could be up to 900 000 unfilled ICT practitioners’ vacancies in the EU by 2015.”

This is not the first time the European Commission has predicted skills shortages for ICT practitioners. Prior to the Millennium bug, there were once more predictions of a massive shortage of programmers. And I suspect, with a little internet searching, it would be possible to find annual predictions of skills shortages and unfilled vacancies, especially from industry lobby bodies.

One reason for this, I suggested in my previous article, is that the ICT industry has an interest in keeping wages down by ensuring an over supply of qualified workers. In this respect, a report last week on the size and value of the apps industry in Europe is interesting. The  report published by industry trade body ACT, claimed that there are currently 529,000 people in full-time employment directly linked to the app economy across Europe, including 330,000 app developers with another 265,000 jobs n created indirectly in sectors like healthcare, education and media, where apps are increasingly prominent.

At first glance then, this is a rosy area for young people with a good future. But digging deeper into the data suggests something different. According to the Guardian newspaper, “In the UK specifically, the report claims that 40% of organisations involved in developing apps are one-man operations, while 58% employ up to five people. It also points out that 35% of UK app developers are earning less than $1,000 a month from their work.”

1000 dollars a month is hardly a living wage, let alone a sufficient level of remuneration to justify the expense of a degree course. However this does not discourage the industry group who amongst other measures are lobbying the European Commission to strengthen the single market and develop “a flexible and supportive business environment for startups and entrepreneurs.” In other words, more deregulation.

There are a number of problems in looking at skills shortages in this area. My suspicion would be that although the numbers graduating from computer science have fallen, graduates in computer and ICT related courses has risen. And demand for ICT practitioners covers a wide range of occupations. Rather than increasing the number of computer science graduates, more useful would be to ensure that ll graduates are skilled in designing and using new technologies. Of course developing such skills and competences should start at a much younger range. It is encouraging the ICT has been included in the primary school curriculum in England from next year.

The EU policy on future employment is based on the idea of job matching – of trying to match skills, qualifications and vacancies. Of course this does not work. What they should be doing is looking at prospective competences and skills – at giving young people the educations and skills to shape the future of workplace3s and employment. That could include the ability to use technology creatively in a socio-technical sense. But of course that would not suit the various industry lobby groups who are more concerned with protecting there profits than shaping the future of our society.

 

 

Where are the real skills shortages?

The debate over skills shortages is looming again. For some years national governments and the European Commission have been warning over shortages of qualified workers in Science, Engineering, Technology and Maths (STEM) . Yet a number of studies refute these claims.

A blog post on SmartPlanet quotes Robert Charette who, writing in IEEE Spectrum,  says that despite the hand wringing, “there are more STEM workers than suitable jobs.” He points to a study by the Economic Policy Institute that found that wages for U.S. IT and mathematics-related professionals have not grown appreciably over the past decade, and that they, too, have had difficulty finding jobs in the past five years. He lists a number of studies that refute the presence of a global STEM skills shortage. The U.S. Bureau of Labor Statistics, for one, estimates that there was a net loss of  370 000 science and engineering jobs in the U.S. in 2011.

I doubt that figures in Europe would be much different. One of the issues is how to define a ‘STEM” job. In the UK jobs are classified through a system called Standard Occupational Classification. This itself has its problems. Given the desire for comparability, SOC is only updated every ten years (the last was in 2010). In a time of fast changing occupations, it is inevitably out of date. Furthermore jobs are classified to four digits. This is simply not deep enough to deal with many real occupations. Even if a more detailed classification system was to be developed, present sample sizes on surveys – primarily the Labour Force Survey (LFS) would produce too few results for many occupations. And it is unlikely in the present political and financial environment that statistical agencies will be able to increase sample sizes.

But a bigger problem is linking subjects and courses to jobs. UK universities code courses according to the Joint Academic Coding System (JACS). It is pretty hard to equate JACS to SOC or even to map between them.

The bigger problem is how we relate knowledge and skills to employment. At one time a degree was seen as an academic preparation for employment. Now it is increasingly seen as a vocational course for employment in a particular field and we are attempting to map skills and competences to particular occupational profiles. That won’t really work. I doubt there is really a dire shortage of employees for STEM occupations as such. Predictions of such shortages come from industry representatives who may have a vested interest in ensuring over supply in order to keep wage rates down (more on this tomorrow). For some time now, national governments and the European Union, have had an obsession with STEM and particularly the computer industry as sources of economic competitiveness and growth and providers of employment (more to come about that, too).

However, more important may be the number of occupations which require use of mathematics or programming as part of the job. One of the problems with the present way of surveying occupational employment is that there is an assumption we all do one job. I would be pretty pushed to define what my occupation is – researcher, developer, write, journalist, project manager, company director? According to the statistics agency I can only be one. And then how the one, whichever it is, be matched to a university course. Computer programmers increasingly need advanced project management skills.  I suspect that one factor driving participation in MOOCs is that people require new skills and knowledge not acquired through their initial degrees for work purposes.

My conclusions – a) Don’t believe everything you read about skills shortages, and b) We need to ensure academic courses provide students with a wide range of skills and knowledge drawn from different disciplines, and c) We need to think in more depth about the link between education and work.

How can we make work in construction trendy?

For some reason the construction industry is not a sexy research area. Motor cars, yes, machine tools, yes, the computer industry, yes, yes, yes. But poor old construction, boring. Yet in economic terms, construction could be seen as the most important sector in Europe.

Our initial research under the Learning Layers project reveals some interesting contradictions. The construction industry is probably the biggest victim of the present recession. Even the neo liberal UK government is now taking actions to stimulate house building – through the partial nationalisation of mortgage debts. Probably an emphasis on infrastructure projects or on social housing would have had a bigger impact and would have avoided the risk of another house price bubble. But the fact they are doing anything at all shows the problem.

But whilst the recession has badly hit profitability and employment another concern has arisen in our interviews with construction companies. Managers are severely worried about the ability to recruit new trainees and particularly to recruit the better educated apprentices they see as critical to cope with the increasing use of technology in construction. Managers point to the major issue as being the image of the industry – just as in research they consider the industry not to be sufficiently sexy. They are less likely to discuss issues such as wages, opportunities for progression or just the sheer hard physical work involved in many construction trades. Having said that, reality may be very different from practice in other images which have a positive image. Work in the games industry can be hard, poorly paid and boring. And for every kid who makes a fortune out of a mobile app, thousands make no money at all.

Either way they are right in that there will almost certainly be demand for new skills to deal with technology – both in the uses of technology for construction but perhaps more important the changing materials being used in building today, not least due to ecologiocal and energy saving concerns and legislation. Whilst improving initial education training programmes is one response and attempting to improve the image of the industry, the big challenge may be to improve research and development and to develop more continuous training for existing employees. In this short extract form previous research, below, we provide an overview of the industry in Europe and Germany, together with issues in how training – or informal learning – might be improved.

The total turnover of the construction industry in 2010 (EU27) was 1186 billion Euros forming 9,7% of the GDP in 2010 (EU27). The construction industry is the biggest industrial employer in Europe with 13,9 million operatives making up 6,6% of the total employment in EU27. In addition it has a substantial influence on other industries represented by a multiplier effect. According to a study by the European Commission, 1 person working in the construction industry is responsible for 2 further persons working in other sectors. Therefore, it is estimated that 41,7 million workers in the EU depend, directly or indirectly, on the construction sector. Out of the 3,1 million enterprises 95% are SMEs with fewer than 20 and 93% with fewer than 10 operatives.   The level of investment in R&D in the European construction sector is low compared to other sectors. The construction sector only invests a small portion of its total production value in research, development, and innovation.

The developments of new processes and materials provide substantial challenges for the construction industry. The traditional educational and training methods are proving to be insufficient as the rapid emergence of new skill and quality requirements (for example those related to green building techniques) require much faster involvement and action on all three levels (individual, organisational and cluster) in order to react quickly to these changes and exploit opportunities. Without this the market potential is hampered by lack of innovation skills and training gaps (Dittrich, Deitmer 2003). The increased rate of technical change introduces greater uncertainty for firms, which, in turn, demands an increased capacity for problem solving skills (Toner 2011, 7). This situation is aggravated in some fast developing European Regions because skilled craftspeople are missing. Therefore there is increasing need for rapid re- and upskilling of the building workforce across the construction cluster.

The construction industry in Germany is one of the country’s most stable economic sectors. Providing jobs to more than 2,2 million people it holds a market share of 21% making the German construction sector the largest in the EU27 in terms of production value. In Germany the federal states, enterprises and the apprentices share the costs of the dual education system (practical training in schools and on-site training). The German compensation fund for construction industry SOKA-BAU reported a total of 270 million Euros of training allowances and job training costs in 2010 making it just a little more than 0,1% of the total production value. In fact, the building trade has one of the lowest participation rates for employees towards further training provision than any other sector (TNS INFRATEST 2008). This is because much of the formal training offering is only weakly connected with real work tasks. The cost pressure in building enterprises limits chances for time-consuming training measures far away from the workplace (Schulte, Spöttl, 2009). Any mobile support for learning and informing at the work place would be welcomed by companies as well as by building workers themselves. With enterprises paying for all the costs associated with the on-the-job training, SMEs need a cost effective solution to overcome the issues that occur with the rapid development in the technologies, processes and materials.