IT jobs outpace most other jobs in
productivity and growth since 2004
August 31, 2018
in information technology-like computer software, big data, and
cybersecurity-are providing American workers with long-lastings
financial stability, suggests a new study from the University of British
Columbia and the Massachusetts Institute of Technology.
"The future of jobs is in IT, and IT-intensive tasks" said Giovanni
Gallipoli, co-author and associate professor from the Vancouver School
of Economics at UBC. "Growth and productivity in jobs involving IT tasks
are very strong, and workers who can perform such tasks have a clear
competitive advantage in the labour market."
The study reveals the well documented slow-down in employment and wage
gains associated with skills and education that has been recorded after
the year 2000 is in fact not occurring at all for jobs that involve IT.
The share of these jobs has increased substantially over the past two
decades, with IT-intensive occupations growing by 19.5 per cent between
2004 and 2017. Less IT-intensive occupations only grew by 2.4 per cent
over the same period. The growth in IT jobs is more than eight times the
growth rate than for other jobs over the past decade.
"While there is clear evidence that earnings growth for Americans with
college degrees has somewhat flattened since 2000, earnings have
actually grown significantly for individuals working in jobs involving
IT tasks," said Gallipoli. "Both companies and workers stand to benefit
if they invest in IT education."
Despite the decline in traditional manufacturing jobs from automation or
off-shoring, the study also shows that a subset of jobs in manufacturing
that involve IT tasks have increased in number, as well as having high
productivity growth and returns.
According to the researchers, the rise of IT has changed the nature of
employment in the manufacturing sector, creating a greater demand for
workers with computing and technical expertise.
"Companies often report troubles finding enough workers for IT-intensive
tasks," said MIT's Christos Makridis, the study's co-author. "This
suggests the presence of a skills gap for jobs with digital and
technical requirements. The insufficient number of job candidates able
to perform complex IT tasks suggests the possibility of workers'
mismatches in the labour market. It also suggests the need for
additional training, whether formal or on the job, like apprenticeships,
that focuses on the skills that are most in demand."
much of the debate around automation and the role of technology in
employment today focuses on its impact on jobs, or how workers stand to
be replaced by robots, the researchers stress greater focus needs to be
paid to its effects on productivity, wages and the ongoing structural
change in the labour market of both manufacturing and services.
"Our research starts to highlight these sizable effects, and the growth
in employment demand for certain IT-intensive tasks cannot be easily
automated or offshored," Gallipoli said. "The emergence of IT intensive
jobs has had a major impact on the structure and on the distribution of
wages both within and across sectors."
"As the cost of collecting and processing information continues
declining, every company is going to turn into a data science company,
whether they like it or not," said Makridis. "That is only going to
raise the demand for information technology workers."