No, Tech Firms Are Not Huge Job Creators

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.


James Pethokoukis rounds up some evidence today that, contrary to their reputations, modern tech companies create just as many jobs as the big industrial giants of yore. The problem is that he’s comparing today’s companies with companies from a century ago, when the labor force was far smaller. You can’t do that. You have to look at jobs as a percent of the entire labor force. When you do that, here’s what his sample set of companies looks like 20 years after their founding:

Modern tech companies are all at the bottom. The only exception is Amazon, and it’s arguable just how much Amazon is really a tech company anyway. Putting a web interface on retail doesn’t really count, but then again, providing cloud services does. So they’re about half and half, which probably explains why they’re in the middle of the chart.

For better or worse, modern tech companies just aren’t huge jobs producers—and as machine intelligence progresses, they’re likely to become even smaller players in the employment market.

Fact:

In-depth journalism that investigates the powerful takes real money and is so damn important right now.But it doesn’t take a Mother Jones investigation to know that billionaires and corporations will never fund the type of reporting (like they do politicians) we do that exists to help bring about change. Instead, our mission-driven journalism is made possible by people power, and has been for 46 years now since our founding as a non-profit.

In “TITLE TK” Monica Bauerlein writes about the perilous moment we’re in, and why it’s so important that we raise $325,000 by the time November’s midterms are decided so we can be ready to throw everything we have at the big issues facing the nation no matter what happens. Please help MoJo’s people-powered journalism with a donation today.

$400,000 to go!

payment methods

Fact:

In-depth journalism that investigates the powerful takes real money and is so damn important right now.But it doesn’t take a Mother Jones investigation to know that billionaires and corporations will never fund the type of reporting (like they do politicians) we do that exists to help bring about change. Instead, our mission-driven journalism is made possible by people power, and has been for 46 years now since our founding as a non-profit.

In “TITLE TK” Monica Bauerlein writes about the perilous moment we’re in, and why it’s so important that we raise $325,000 by the time November’s midterms are decided so we can be ready to throw everything we have at the big issues facing the nation no matter what happens. Please help MoJo’s people-powered journalism with a donation today.

$400,000 to go!

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate