Technology is over rated as creator of new jobs (2)

Winners, losers

Somewhat similar themes were echoed in the remarks of Enrico Moretti, an economics professor at the University of California, Berkeley, whose recent book, "The New Geography of Jobs," was widely praised for its insights into the changing nature of the American workforce.

According to Moretti, there was not one single labor market in the United States, but hundreds, corresponding to metropolitan areas. Overall, he said, these markets fell into three different groups: those doing well in the new technology economy, those doing poorly and those hanging in the balance.

The differences between the emerging job market "winners" and "losers" are striking. In 1980, Moretti noted, both high school and college graduates in Austin, Texas, made half as much as their counterparts in Flint, Michigan. Now, however, those ratios are reversed, and the gap between wages in Flint's rust belt and the booming tech sector in Austin continues to grow.

Tips for survival

While technology may not be making as many jobs as it once did, the jobs it does create are among the most economically valuable. Moretti noted that the average tech position creates five additional jobs in various support industries, from doctors to hairdressers to dog walkers. However, the "multiplier effect" for manufacturing jobs is much lower: 1.6 instead of 5.

Because of that high multiplier, the majority of people will never be employed directly by technology, even in thriving tech hubs like Silicon Valley. "Technology jobs will be the minority, around 30 percent," Moretti said.

Michael Chui, who studies job creation for the McKinsey Global Institute, also said the United States needs to increase the number of college graduates studying science, technology, engineering and mathematics, the so-called "STEM" curriculum.

The fourth member of the panel, Hal Varian, chief economist at Google and an emeritus professor at the University of California, Berkeley, told the audience that the "secret" of guaranteeing oneself employment in an increasingly technology-oriented society is "to make yourself an expensive complement to something that is becoming cheaper and more ubiquitous."

Varian also urged greater appreciation for the "supporting" jobs created by technology, saying many of them, like doctors and lawyers, require sophisticated educations and usually provide excellent salaries.

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