Which industries have created the most jobs in Qld over the last 10 years?

In the latest EconTalk episode, host Russ Roberts interviews the Australian robotics guru and MIT emeritus professor Rodney Brooks. After listening to the episode, I am now much less concerned about artificial intelligence and automation rendering a large fraction of the workforce redundant than I once was. I thoroughly encourage you to listen to the episode, but here’s the summary from the website:

Brooks argues that we both under-appreciate and over-appreciate the impact of innovation. He applies this insight to the current state of driverless cars and other changes people are expecting to change our daily lives in radical ways. He also suggests that the challenges of developing truly intelligent robots and technologies will take much longer than people expect, giving human beings time to adapt to the effects.

So we probably don’t need to worry just yet about those frightening predictions that up to 40 percent of current jobs could be made redundant by AI and automation. Indeed, it appears that much of the jobs growth we have seen in the last decade has been in the types of jobs it would be difficult, if not almost impossible, to replace by robots, in health, aged, disability and child care. The broad Health Care and Social Assistance industry is leading other industries in jobs growth by a long way (see chart below, based on four-quarter moving averages of the original ABS data).

Empl_growth_industry

While we don’t have a subdivision breakdown of the Health Care and Social Assistance industry division for Queensland, the Australian data can give us some insight into the nature of growth in the sector (see chart below, also based on the most recent vintage of ABS industry employment data).  Hospitals and the broader health care industry, including GPs, physios, chiropractors, and pathology labs, etc., have certainly seen strong growth over the last decade. But I was most surprised by the huge growth in Social Assistance Services. This category includes child care and non-residential aged and disability care services. subdiv_aus

Child care employment has surged, in part, due to the adoption earlier this decade of the National Quality Framework which imposed minimum staff-to-child ratios, depending on the ages of the children at child care centres (see p. 6 of the excellent report Why Childcare is not Affordable by the CIS’s Eugenie Joseph).

In case you’re interested in the relative sizes of the different industry sectors in Queensland, here’s another facet wrap I’ve produced in the R package gglot2 (N.B. I’ve left out the three smallest industry sectors).

empl_ind_qld

Advertisements
This entry was posted in Labour market, Uncategorized and tagged , , , , , , , . Bookmark the permalink.

2 Responses to Which industries have created the most jobs in Qld over the last 10 years?

  1. Russell Rogers says:

    Whilst any job growth is good if the majority is for social services then that area is sucking up state wealth not actually producing it. We need the jobs in areas that will provide export income or building wealth in some other way. This is a one way to increased debt I suspect.

    • Gene Tunny says:

      Hi Russell, thanks for your comment. There’s certainly the risk of a lot of inefficient activity in the social services sector. Certainly I think the prescribed staff-to-child ratio in childcare are unnecessary and diverting labour from more productive activities.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s