many unskilled have low earning employment opportunities in service sector . state your opinion
Answers
Explanation:
Growing the high-tech sector is a common policy goal, yet there is little evidence on whether the benefits reach low-skilled workers.
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Shows that each new high-tech job creates around 0.7 new jobs in non-tradeables in the same British local labour market.
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Most new non-tradeable jobs go to low skilled workers. If 10 new high-tech jobs are created, 6 low-skilled workers gain employment.
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Growth in high-tech is associated with higher average wages for mid-skilled workers.
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Low-skilled workers benefit from new employment, but average wages fall, particularly once housing costs are considered.
Abstract
Do low-skilled workers benefit from the growth of high-technology industries in their local economy? Policymakers invest considerable resources in attracting and developing innovative, high-tech industries, but there is relatively little evidence on the distribution of the benefits. This paper investigates the labour market impact of high-tech growth on low and mid-skilled workers, using data on UK local labour markets from 2009–2015. It shows that high-tech industries – either STEM-intensive ‘high-tech’ or digital economy – have a positive jobs multiplier, with each 10 new high-tech jobs creating around 7 local non-tradeable service jobs, around 6 of which go to low-skilled workers. Employment rates for mid-skilled workers do not increase, but they benefit from higher wages. Yet while low-skilled workers gain from higher employment rates, the jobs are often poorly paid service work, so average wages fall, particularly when increased housing costs are considered.