2017 economic symposium october 20, 2017 cynthia forland ...... · source: michael chui, james...

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The robots are coming! The robots are coming! 2017 Economic Symposium October 20, 2017 Cynthia Forland, CIO and Assistant Commissioner Workforce Information and Technology Services

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Page 1: 2017 Economic Symposium October 20, 2017 Cynthia Forland ...... · Source: Michael Chui, James Manyika, and Mehdi Miremadi, Where machines could replace humans – and where they

The robots are coming! The robots are coming!

2017 Economic SymposiumOctober 20, 2017

Cynthia Forland, CIO and Assistant Commissioner Workforce Information and Technology Services

Page 2: 2017 Economic Symposium October 20, 2017 Cynthia Forland ...... · Source: Michael Chui, James Manyika, and Mehdi Miremadi, Where machines could replace humans – and where they

Oh, wait. . . they’re already here!

Page 3: 2017 Economic Symposium October 20, 2017 Cynthia Forland ...... · Source: Michael Chui, James Manyika, and Mehdi Miremadi, Where machines could replace humans – and where they

Oh, wait. . . they’re already here!

Page 4: 2017 Economic Symposium October 20, 2017 Cynthia Forland ...... · Source: Michael Chui, James Manyika, and Mehdi Miremadi, Where machines could replace humans – and where they

So, what does it all mean?

Automation is more likely to impact specific tasks/skills rather than entire jobs

Tasks/skills more likely to be automated are concentrated in specific industries and occupations

Occupations threatened by automation are highly concentrated among lower-paid, lower-skilled and less-educated workers

Many of the occupations with the highest risk of automation employ high percentages of younger workers

Page 5: 2017 Economic Symposium October 20, 2017 Cynthia Forland ...... · Source: Michael Chui, James Manyika, and Mehdi Miremadi, Where machines could replace humans – and where they

Automating skills not jobs

Source: Michael Chui, James Manyika, and Mehdi Miremadi, Where machines could replace humans – and where they can’t (yet),” McKinsey & Company, McKinsey Quarterly, July 2016

Page 6: 2017 Economic Symposium October 20, 2017 Cynthia Forland ...... · Source: Michael Chui, James Manyika, and Mehdi Miremadi, Where machines could replace humans – and where they

Occupations most and least susceptible to automation

Source: Carl Frey and Michael Osborne, “The Future of Employment: How Susceptible are Jobs to Computerization,” Oxford University, 2013

Page 7: 2017 Economic Symposium October 20, 2017 Cynthia Forland ...... · Source: Michael Chui, James Manyika, and Mehdi Miremadi, Where machines could replace humans – and where they

Current and projected employment in Washington state for occupations at highest risk of automation

Occupational title June 2016 employment 2025 employmentTelemarketers 2,566 3,110Title examiners, abstractors and searchers 1,479 2,206Sewers, hand 28 72Mathematical technicians 11 11Insurance underwriters 2,162 2,250Watch repairers 17 23Cargo and freight agents 1,738 1,946Tax preparers 878 1,098Photographic process workers and processing machine operators 310 252New accounts clerks 743 685Library technicians 2,830 3,117Data entry keyers 2,689 2,997Timing device assemblers and adjusters 0 0Insurance claims and policy processing clerks 5,054 5,354Brokerage clerks 718 734Order clerks 4,685 5,487Loan officers 6,383 6,682Insurance appraisers, auto damage 276 292Umpires, referees, and other sports officials 306 390Tellers 10,519 10,651

Source: Employment Security Department/WITS; U.S. Bureau of Labor Statistics, Occupational Employment Statistics, 2017; Carl Frey and Michael Osborne, “The Future of Employment: How Susceptible are Jobs to Computerization,” Oxford University, 2013

Page 8: 2017 Economic Symposium October 20, 2017 Cynthia Forland ...... · Source: Michael Chui, James Manyika, and Mehdi Miremadi, Where machines could replace humans – and where they

Top occupations in Washington state and risk of automation

Source: Employment Security Department/WITS; U.S. Bureau of Labor Statistics, Occupational Employment Statistics, 2017; Carl Benedict Frey and Michael A. Osborne, “The Future of Employment: How Susceptible are Jobs to Computerization,” Oxford Martin Programme on Technology and Employment, September 2013

Page 9: 2017 Economic Symposium October 20, 2017 Cynthia Forland ...... · Source: Michael Chui, James Manyika, and Mehdi Miremadi, Where machines could replace humans – and where they

Concentration of employment in select industries susceptible to automation

Source: Employment Security Department/WITS; U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, First Quarter 2017

Page 10: 2017 Economic Symposium October 20, 2017 Cynthia Forland ...... · Source: Michael Chui, James Manyika, and Mehdi Miremadi, Where machines could replace humans – and where they

Concentration of employment in select industries susceptible to automation

Source: Employment Security Department/WITS; U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, First Quarter 2017

Page 11: 2017 Economic Symposium October 20, 2017 Cynthia Forland ...... · Source: Michael Chui, James Manyika, and Mehdi Miremadi, Where machines could replace humans – and where they

But, automation isn’t simply a question of technical feasibility

Technical feasibility Costs to automate Scarcity, skills and cost of workers who do that work Benefits beyond cost savings Regulatory and social considerations

Source: Michael Chui, James Manyika, and Mehdi Miremadi, Where machines could replace humans – and where they can’t (yet),” McKinsey & Company, McKinsey Quarterly, July 2016

Page 12: 2017 Economic Symposium October 20, 2017 Cynthia Forland ...... · Source: Michael Chui, James Manyika, and Mehdi Miremadi, Where machines could replace humans – and where they

Nonfarm employment in WashingtonCurrently up 11 percent from previous employment peak

2,500,000

2,600,000

2,700,000

2,800,000

2,900,000

3,000,000

3,100,000

3,200,000

3,300,000

3,400,000

Jan-00 Jan-03 Jan-06 Jan-09 Jan-12 Jan-15

(Sea

sona

lly ad

just

ed em

ploy

men

t)

U.S. recession Nonfarm employment

Source: Employment Security Department/WITS; U.S. Bureau of Labor Statistics, Current Employment Statistics. U.S. recessions are shaded.

Page 13: 2017 Economic Symposium October 20, 2017 Cynthia Forland ...... · Source: Michael Chui, James Manyika, and Mehdi Miremadi, Where machines could replace humans – and where they

Industry share of total employment –pre/post recession

0.0% 5.0% 10.0% 15.0% 20.0%

MiningUtilities

ConstructionManufacturing

Wholesale tradeRetail trade

Transportation and WarehousingInformation

Finance and InsuranceReal estate and rental and leasing

Professional, scientific, and technical servicesManagement of companies and enterprises

Administrative and support and waste management and remediation servicesEducational services

Health care and social assistanceArts, entertainment, and recreationAccommodation and food services

Other services (except public administration)Government

Nov 2007

Dec 2012

Aug 2017

Source: Employment Security Department/WITS; U.S. Bureau of Labor Statistics, Current Employment Statistics

Page 14: 2017 Economic Symposium October 20, 2017 Cynthia Forland ...... · Source: Michael Chui, James Manyika, and Mehdi Miremadi, Where machines could replace humans – and where they

Occupational share of total employment – pre/post recession

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

ManagementBusiness and financial operations

Computer and mathematicalArchitecture and engineering

Life, physical, and social scienceCommunity and social services

LegalEducation, training, and library

Arts, design, entertainment, sports, and mediaHealthcare practitioners and technical

Healthcare supportProtective service

Food preparation and serving relatedBuilding and grounds cleaning and maintenance

Personal care and serviceSales and related

Office and administrative supportFarming, fishing, and forestry

Construction and extractionInstallation, maintenance, and repair

ProductionTransportation and material moving

2007 2012 2016

Source: Employment Security Department/WITS; U.S. Bureau of Labor Statistics, Occupational Employment Statistics

Page 15: 2017 Economic Symposium October 20, 2017 Cynthia Forland ...... · Source: Michael Chui, James Manyika, and Mehdi Miremadi, Where machines could replace humans – and where they

Any questions?

Cynthia Forland, Assistant Commissioner, CIOWorkforce Information and Technology Services Employment Security Department(360) [email protected]

esd.wa.gov/labormarketinfo