Technology isn't destroying jobs through automation; it is a key driver of job creation among entrepreneurs, suggests a new study.
According to a new EY survey, 51% of the world’s top entrepreneurs agree that investments made in technology have changed their workforce, with 81% of those saying it’s led them to hire.
"There’s a misconception that technology will reduce jobs, but that’s simply not what we’re seeing with entrepreneurial companies,” says Colleen McMorrow, EY Partner and Canadian Strategic Growth Markets Leader. “Our survey finds technology is helping these companies increase their cost competitiveness and efficiency, which in turn allows them to invest in their businesses and expand their workforces.”
EY’s Global job creation survey also found entrepreneurs are increasingly global in their outlook and are exploiting the opportunities that technology brings them to tap the global talent pool and address skills shortages in their home market.
“Technology and mobile working is opening up a greater and more skilled pool of workers for entrepreneurial companies,” added McMorrow. “Companies are no longer constrained by having to hire from the obvious pools of talent, as technology enables employees to do their jobs from anywhere, inside or outside the physical walls of the organization.”
Companies in the technology sector are actually leading the way when it comes to employment growth: they created jobs in 2013 at a higher median pace, compared to job growth among all entries in all sectors.
“In Canada, tech companies achieved a 36% job growth rate, while sectors overall clocked in at 25%,” says McMorrow.
76% of entrepreneurs surveyed plan to increase the size of their workforce in the year ahead by an average of 19%.