A team of researchers at Ball State University in Indiana has published a paper that shows some concerning data regarding the future of Jobs in the American labor market. Their paper was published on Center for Business and Economic Research (CBER) Data Center of Ball State University website.

American jobs will be offshored or automated

The study looked at recent research that examined how jobs were displaced or moved across the country. They discovered that as much as 25% of current jobs in American could be offshored in the years to come since they are in danger of being replaced by cheaper foreign competition. They also found more concerning data for future American job seekers, as they indicated that up to 50% of low-skill jobs might become automated over the long haul. This would potentially displace millions of America workers and disrupt the labor market.

It was cited that both Automation and trade growth are important parts of a vibrant economy, but their impacts are not even across the population. The researchers stated that the long-term effects of these two things have a much greater negative impact on those who are less educated, work in low-skill jobs or work in vulnerable jobs.

Trapped in a treacherous economic cycle

The study then discussed specific communities across America that have become stuck in a “treacherous economic cycle.” This is because an uneven percentage of recent job growth and business expansion has only taken place in a few metro areas. Since 2009 the researchers estimate that 50% of net business formation in America has only occurred in 0.64% of U.S. counties. This has let certain parts of the country diversify their workforces to minimized the negative effects of offshoring and automation.

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However, it has also caused a congregation of certain areas that see wealth decrease as opportunities disappear. This caused those that are rich, skilled, or better educated to leave the area, leaving only low-skill jobs in their wake. These are the types of jobs most at risk of being displaced in the future.

The researchers found that the highest risk area in America for job loss because of automation and offshoring was Aleutians East Borough county in the state of Alaska. Rural areas were found to be the most susceptible these two things, especially ones in Alabama, Georgia, Mississippi, Tennessee, the Carolinas, Virgina, and Indiana.