About The Bay: Technology May Actually Decrease Available Jobs
SAN FRANCISCO (KCBS) – The recession isn't the only reason there are fewer jobs out there today; technology is also changing the face of the job market.
It's helping business but not always helping the job-seeker.
Half a million new businesses start up each year in the United States. But when you start a new business these days, you don't need as many people.
"10 years ago, it was about 27 employees. Now, it's about 19," said Steve King, who heads Emergent Research.
His company does surveys for businesses and he runs it out of his home with two employees. Other stuff like accounting, data storage and finances can be done by others.
"People frequently use other companies to manage services better than they would," said Oren Michaels, CEO of Mashery.
KCBS' Mike Sugerman Reports:
He said cloud computing helps companies establish apps without having to hire people not immediately concerned with the business.
"When we started the company five and a half years ago, we didn't buy any servers. We didn't have anyone hired to manage those servers," he said.
Usually when recessions come to an end, there are more jobs than there were before, because technology creates new industries. But Michael Burnack, who ran the state's Employment Development Department said the worry is that technology and offshoring could mean fewer jobs in the future.
"The ways of doing business in retail, business services, financial services have changed," said Burnack. "These jobs are never coming back."
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