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Ball State study warns of automation, offshoring

Posted: Friday, June 23, 2017

Source: INside Indiana

A new report from Ball State University provides a snapshot of two forces that could have a big impact on the workforce of the future: automation and offshoring. The research looks at communities throughout the country and suggests ten counties in Indiana that could be especially susceptible. Nationwide, the analysis found approximately one in four U.S. jobs faces future threats from foreign competition.

The report says LaGrange, Switzerland, Blackford and Perry counties are at risk of job loss from automation and offshoring threats lurk in LaGrange, Clinton, Kosciusko, DeKalb, Blackford, Hamilton and Elkhart counties. The results suggest LaGrange County is among the most vulnerable areas in the country to losing jobs to potential offshoring in the future.

Center for Business and Economic Research (CBER) director Michael Hicks says “automation is likely to replace half of all low-skilled jobs. Communities where people have lower levels of educational attainment and lower incomes are the most vulnerable to automation. Considerable labor market turbulence is likely in the coming generation. More worrisome is that there is considerable concentration of job loss risks across labor markets, educational attainment and earnings.” “This accrues across industries and is more pronounced across urban regions, where economies have concentrated all net new employment in the U.S. for a generation.”

The research is in collaboration between the school’s Center for Business and Economic Research and Rural Policy Institute Center for State Policy.