Introduction

Concerns about the impact of technology on jobs may seem to be a relatively modern problem. But as far back as 1589, the inventor William Lee applied to Queen Elizabeth I for a patent on a new type of knitting machine that could produce far higher quality stockings than weavers could by hand. The Queen denied him his patent, saying "consider thou what the invention could do to my poor subjects. It would assuredly bring to them ruin by depriving them of employment, thus making them beggars."1 In spite of Mr Lee's setback, over the next three centuries the UK became the world leader in textile manufacturing.

The same debate is rolling on in the second Elizabethan age. How technology impacts our jobs is 'front of mind' for businesses, policymakers, the media and the general public. This will no doubt continue long into the future.

As part of Deloitte's ongoing work on the impact of technology, robotics and automation on the UK's economy, we are pleased to present the results of our latest research in this short paper. The goal of this research was to create a better understanding of the actual effects of technology on the UK's workforce compared to the hypothetical ones. We therefore build on the analysis, published last year in Deloitte's Agiletown: The relentless march of technology and London's response, and examine the changes that have occurred in the UK's labour force over the last 15 years.2

Key points from this research include:

  • Over the last 15 years, the UK has benefitted from a technology-driven shift from low skill, routine jobs to higher-skill, non-routine occupations.
  • Over 800,000 jobs have been lost but nearly 3.5 million new ones have been created.
  • On average, each job created is paid approximately £10,000 per annum more than the lower-skilled, routine jobs they replace, resulting in a £140 billion net boost to the economy.
  • Every region has benefitted from employment growth in higher-skilled occupations.
  • Almost three-quarters of UK businesses surveyed say that they will employ more people (net) in future and most think that technology will have a significant or very significant impact on their businesses.
  • In the future, businesses will need more skills, including: digital know-how, management capability, creativity, entrepreneurship and complex problem solving.
  • The UK's continued success will rest on the ability of businesses and organisations, educators and government to anticipate correctly future skills requirements and provide the right training and education.

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