This week, we speak with Constance Hunter, Chief Economist at KPMG. Before becoming chief economist at KPMG, she managed the firm’s alternative investments unit. Before joining KPMG, Hunter was Deputy Chief Investment Officer for Fixed Income at AXA Investment Managers. She serves on the board of the National Association for Business Economics (NABE).
Hunter discusses the changes in the labor market relative caused by automation, globalization and technology. She points out our tendency to ignore the many new jobs that are being created, and the ongoing unfilled high-paying technical jobs which there will be tremendous demand for decades to come. Not only are new jobs being created, but they are better paying and more fulfilling than the low skill, low wage jobs that are being destroyed.
She points out that productivity gains are occurring but are not distributed evenly by industry. Finance, as an example, has seen huge productivity gains, while other sectors have not. But the biggest factor turns out to be the diffusion of technology not just by sector but throughout each individual firm is the key factor. The leading 5% of companies utilize technology throughout the entire firm, capturing most of the productivity gains.
Some of her favorite books are referenced here; transcript will be posted tomorrow.
You can stream/download the full conversation, including the podcast extras, on Bloomberg, iTunes, Overcast, and Soundcloud. Our earlier podcasts can all be found on iTunes, Soundcloud, Overcast and Bloomberg.
Next week, we speak with Jack Devine, a 32-year veteran of the Central Intelligence Agency (“CIA”) serving as both Acting Director and Associate Director of CIA’s operations. He is the author of Good Hunting: An American Spymaster’s Story.
Constance Hunter’s Favorite Books
The Worldly Philosophers: The Lives, Times And Ideas Of The Great Economic Thinkers, Seventh Edition by Robert L. Heilbroner
West with the Night: A Memoir by Beryl Markham
Born to Run by Bruce Springsteen