2. Labour Market Trends Innovations in Technology and Globalization: Intro to the information era Growth In Small Business Reorganization of Firms and Institutions Impact on Jobs Globalization The Shift to Non-Standard Employment Industrial Shifts The Impact of Demographic Change Summary Where to Find More

Companies that make greater use of technology create the most jobs.

Survival in the new global business market calls for improved productivity and increased competition. Indeed, firms that have upgraded their products, used technology skillfully and sought niche markets have not only survived, but prospered. However, the down side of increased productivity is the elimination of many jobs in manufacturing, transportation and other high-paying industries.

Just as globalization presents Canadians with both challenges and opportunities, so too does technology. Ever since the beginning of the first industrial revolution in the 18th century, the introduction of new technologies has meant both the transfer of jobs from one sector to another (from agricultural labour to the production of farming equipment, for example) and the ultimate creation of more jobs throughout society.

Figure 1 below shows that, continuing into recent times, companies that make greater use of technology create the most jobs. The more intense the use of technology, the greater the job creation over time. And while many of the jobs created by new technology are frequently not accessible to the people who have been displaced, it is important to remember that job creation by companies that make greater use of technology is not limited to just scientific or technical jobs:

• The service sector is the largest generator of jobs and many of the jobs created in this sector do not demand high-level technical skills.
• Growing manufacturing companies in high-tech sectors also need workers in clerical, finance, shipping/warehousing, sales and marketing fields.

Innovations in Technology:
Introduction to the Information Era

While globalization and the other trends discussed in this chapter will have a huge impact on workers and the labour market, the changes will be small compared to the radical changes brought about by the spread of information technology. Job forecasters believe that those who can figure out how the revolution in information technology will affect hiring practices in their field, will be in a position to take advantage of many opportunities.

Beck (Shifting Gears, 1992) and Toffler (Powershift, 1990) are two of the more well-known future trend writers who speak of the new information or knowledge era which has evolved from the industrial era.

There is an explosion of knowledge that is becoming more and more available to the public due to technological advances, and it is changing the power base and the way people tackle their problems. This includes career decision making.

Toffler traces the spread of knowledge which was once only accessible to the few, thus supporting a pyramid structure with power resting at the top. He talks of changes in the behaviour and demands of the general population as the information became more accessible to them.

A graphic example is the new automated Job Bank information that is available to all job seekers in Canada Employment Centres (CECs) and some off-site locations such as colleges and job-finding clubs. On a computer terminal, anyone can search for job openings locally or nationally, with the information updated hourly. Prior to this, clients were screened by a CEC counsellor before receiving referrals to job openings.

Figure 1: Technology Use, Job Creation and Company Growth

The Information Industry An entire industry, the information industry, has grown out of the ability to access and the demand to acquire information instantaneously. Data-base companies, such as Canadian InfoMart, International Data Corporation (IDC), Northern Business Information (NBI) and Dialog, provide articles and reports, topics covered in the newspapers, bibliographies, etc., through a computer or telephone inquiry service. Some information sellers are very specialized such as those that cater to the medical field, architecture, law and even to counsellors. data-base company as small and specialized as a computerized list of boats for sale across Canada can succeed because of its ability to reach the equally small, specific target audience.

This new technology has implications for all of those involved: the clients, the counsellor and the employers posting openings. For example:

• Clients have more up-to-date information as well as more responsibility for determining for themselves the most appropriate jobs to apply for.
• Fewer CEC counsellors are needed, and the counsellor jobs that remain demand higher skill levels because the only clients receiving counselling are those most at risk and in need of direct intervention.
• Employers must take on more of the screening process themselves.

For manufacturing companies, the speedy access to massive amounts of information has bestowed power to increase quality and quantity of products, to receive orders from around the world and to reply the same day, to use billing systems that co-ordinate orders and invoices for multi-branched worldwide companies.

Research and development companies can receive data from the source before it is even published, making vital information available instantaneously. The general public receives information from media that affects spending habits, charity choices, political decisions and social opinions.

Expanding high technology has had a significant impact on virtually all industries. The changing nature of work is evident in the automation changes in the processes of design, manufacturing and quality control, in offices and in  transportation, communications, health care and retail services. Tradespersons are finding that the new fabrication materials and computer-based processes are increasing the complexity of their trades. For example, machinists now need computer training to use computerized numeric control (CNC) equipment in manufacturing.

As technology advances, new, faster, better goods and services are available and in demand. To fulfill consumer demand, there is another shift in the labour market toward workers who are trained in the skills that can provide such goods and services. Although a field may suddenly need people trained in new methods, the technology itself may lessen the number of workers needed in that field.