Here’s my coverage of how information technology may be hurting the economy:
Forrester released today a report called Caution: IT Investment May Be Hurting US Job Growth. The report’s authors – Andrew Bartels, Christopher Mines and Sarah Musto – note that despite record corporate profits, unemployment remains unchanged. Forrester notes that poor job growth both causes and is caused by poor economic growth. It’s a vicious cycle.
The report suggests that corporations are investing in IT instead of hiring workers. The analysts looked at research from 62 industries to find out what’s going on. The report says that the industries with the highest IT investment are also the ones with the biggest decline in jobs. The analysts conclude that there is a causal connection between IT investment growth and the lack of employment growth.
Forrester is not the first to suggest this. Gartner VP and fellow Tom Austin’s blog post on the same subject lead us to ask last year “What Can IT Do To Stimulate the Job Market?” And AMI Partners claimed last year that cloud computing would result in 200,000 – 250,000 job losses over the next decade. […]
“Looking across these 62 private sector industries, we found a modest but statistically significant inverse or negative correlation between IT investment and employment,” the report says. The effect was most pronounced in manufacturing.