Tags: job | risk | offshoring | automation

Jobs at Risk of Offshoring, Automation, Study Says

Image: Jobs at Risk of Offshoring, Automation, Study Says

Magnifying glass focusing on the word jobs. (Charlieaja/Dreamstime)

By    |   Tuesday, 18 Jul 2017 12:13 PM

One quarter of American jobs are at risk of offshoring, according a study by Ball State University that said the threat could undermine efforts to boost the economy across the country.

Michael Hicks, director of Ball State's Center for Business and Economic Research said that the numbers for jobs being replaced by automation are even more scary, with projects stating that as many as 50 low paying jobs could be lost because of technology, CBS News reported.

"We found a toxic brew," Hicks said about the center's study, "How Vulnerable Are American Communities to Automation, Trade, and Urbanization?" "Automation is likely to replace half of all low-skilled jobs, and roughly one in four of all American jobs are at risk from foreign competition in coming years."

The study's executive summary said jobs lost to offshoring will likely cross all income and educational spectrums.

"More worrisome, perhaps, is that there is a considerable concentration of job loss risks across labor markets, educational attainment and earnings," the study said. "This accrues across industries and is more pronounced across urban regions, where agglomeration economies have concentrated all net new employment in the U.S. for a generation.

"Indeed, much of the political rhetoric surrounding these job loss risks misses the major policy worries. Job loss risk to offshoring is spread across income and education, while automation risk is concentrated among low-wage, low-skilled workers. Both types of job loss risk are concentrated within labor markets (which we define as a county and all adjacent counties), and urban places tend to offer more resilience due to existing forces of agglomeration," the study continued.

The report pointed out that the Aleutians East Borough of Alaska was the most vulnerable to both offshoring and automation, but rural counties in Mississippi, Georgia, Indiana, Virginia and the Carolinas are especially vulnerable to job displacement, U.S. News & World Report said.

After the Aleutian East Borough, the other top communities that are threatened by offshoring are Pontotoc County, Mississippi; Tippah County, Mississippi; Roseau County, Minnesota; LaGrange County, Indiana; Los Alamos County, New Mexico; Clinton County, Indiana; DeKalb County, Tennessee; Chickasaw County, Mississippi; and Kosciusko County, Indiana.

Those most threatened by automation include Quitman County, Georgia; Aleutians West Census Area, Alaska; Buena Vista City, Virginia; Chickasaw County, Mississippi; Allendale County, South Carolina; Tyrrell County, North Carolina; Coosa County, Alabama; LaGrange County, Indiana; and Murray County, Georgia.

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One quarter of American jobs are at risk of offshoring, according a study by Ball State University that said the threat could undermine efforts to boost the economy across the country.
job, risk, offshoring, automation
396
2017-13-18
Tuesday, 18 Jul 2017 12:13 PM
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