AI and the disappearance of jobs

Mark Denholm • July 27, 2023

Change is well underway with the impact of AI on employment, but what does the future hold?

Back in 2015 I wrote a blog, titled 'how safe is your job', about the impact of automation and AI on employment. My article was based around a 2014 Pew survey which posed the question, will automation, artificial intelligence applications, and robotics displace more jobs than they create by 2025? At the time, there was a pretty even split in terms of the poll findings. A lot of water has passed under the bridge since I wrote that article in 2015 and some water has even passed over the top of bridges as well, so I thought I'd have a quick look at some more current stats and thoughts on the impact of AI on the employment market.

The Global Risks Report 2023 issued by the World Economic Forum indicated that AI and technology are expected to displace around 85 million jobs by the year 2025. In the last few weeks IBM put a freeze on 7,800 jobs that could be replaced by AI and automation and BT announced it would cut up to 55,000 jobs by 2030, with about 10,000 of those predicted to be replaced by AI. A recent post from Techjury highlighted a range of "stats" (predictions might be more accurate) about jobs being lost to automation including the suggestion that automation will displace 85 million jobs globally by 2025. It led me to wonder how many people were actually in employment globally, approximately 3.32 billion in 2022 apparently (that's a tough head count).

Change is well underway, that much is clear but it's the pace of change and the speed of advancements with AI that is most notable. I've no doubt some of the stats/predictions highlighted will come to pass, and they may happen in the next couple of years, but change isn't new and neither is the fear of change. The image I used for my original article was of a couple of plucky Luddites going postal on some 19th century machinery, so fear of progress and technology in the workplace has been going on since Ned Ludd smashed up a couple of stocking frames in 1779. It's natural to feel threatened by advancements in technology and their impact on the workplace and job security.

It's worth highlighting that in 1991 there were, approximately (according to the t'internet) 1.04 billion people in employment around the world. Since then, we've seen huge change in the world of work including the creation of the internet, mobile technology, social media, cloud computing, global pandemics, remote working and the end of the Sopranos. We've survived it and more than 2 billion additional jobs have been created since then.

So, yeah, a lot of jobs will disappear due to AI and while automation has resulted in job displacement, it has also led to the creation of new job opportunities and entire new industries. Our team dedicates time every week researching new and upcoming recruitment focused AI tools and platforms so that we can keep innovating and making the experience of working with Talent Hive a better one. If we can see what's coming in the future, we can navigate change better and do things more efficiently and rather than shy away from it, we'll embrace it.

Talking of 1991, when I was 12, I heard the expression 'if you can't beat them, join them', except at the time I heard it as 'if you can't beat them, lick them'. It took me two years to discover there was no licking necessary and I achieved an inner peace that I have rarely experienced since.

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Temp & Contract Recent Trends

May 1, 2024

The economic conditions are influencing the contract employment landscape in several ways. Here are some of the trends Talent Hive has seen recently. Demand Shifts NZ firms facing economic headwinds are hesitant to commit to FTE hires but with projects and deadlines still to deliver on, there is likely to be more reliance on temporary and contract solutions to manage workloads in the coming months. Available Talent Although not widespread, layoffs and restructures in the Tech sector could lead to a larger pool of candidates available for temporary and contract work, and Talent Hive has seen an increase in enquiries from people looking to understand how they might set themselves up for contract engagements. This has the potential to increase competition but could also provide businesses with access to qualified talent on a flexible basis. Tech Sector Specifics We are seeing an increase in demand for contract staff recently, particularly Software Developers, Integration and Solution Architects, and Business Analysts. This upswing in demand is reflected in the recent Seek job listings data. There are 207 Contract IT/Tech roles advertised on Seek today and 23% of those contract roles have been listed in the last 7 days. 52 of the 207 contract roles advertised are for Software Eng/Developers with 30 listed ads for Contract BA’s. Wage Control In Stats NZ’s latest update, New Zealand's salary rates actually increased by 4.1 percent in the year to March. That labour cost growth slightly outstripped inflation, which was sitting at 4 percent. Contract hourly rates in the Technology sector have stabilised in recent months as hiring demand has decreased and we may even see hourly rates come back a little, particularly for role types where there is an oversupply of contract talent. Hybrid Work Trend One trend we are certainly seeing in the contract market are fewer remote work opportunities. Increasingly there is a requirement for contractors to have the ability to work some of the week at a designated office and this is restricting the opportunities contractors are able to go for. Full remote work options aren’t completely gone but they are significantly reduced. Contract candidates must be open to in-office work for at least some portion of their engagement. Overall, the current climate creates a complex landscape for both businesses seeking talent and professionals exploring temporary and contract opportunities. Success for Contractors will depend on adaptability, flexibility around rates, and contract length. Talent Hive's Value Talent Hive's understanding of the current market dynamics, along with our strong network of skilled professionals, positions us uniquely to support both clients and candidates Addressing Uncertainty: For businesses navigating hiring uncertainty, Talent Hive offers flexible staffing solutions. We have access to contract talent that are ready to fill immediate skill gaps and help organisations manage fluctuating workloads. Beyond Just Tech Skills: We understand that finding the right technical expertise is only half the battle. Talent Hive's strong connections within the contractor talent pool allow us to identify professionals who are not only technically capable but also a strong cultural and organisational fit for our clients. This approach ensures smoother onboarding and a positive impact for both the contractor and the employer. We would like to share some of the contractors we’re working with at the moment. Click below to view some of the great IT talent we're working with to find roles at the moment.