Davos 2014: Google's Schmidt warning on jobs

Eric Schmidt at the World Economic Forum, Davos, in 2013

Google chairman, Eric Schmidt, has warned the jobs problem will be "the defining one" for the next two-three decades.

He said given the constant development of new technology, more and more middle class workers would lose their jobs.

Speaking at a meeting at the World Economic Forum at Davos, he added that it was not clear if workers would have the right skills to be re-hired.

Mr Schmidt compared the situation to the industrial revolution.

He called for more industry-wide innovation.

"It's a race between computers and people - and people need to win," he said.

Redefining

The one-time chief executive of Google said that there was an enormous amount of innovation happening, and it would be an economic mistake to delay adopting efficient new technologies.

He pointed out that, on a net basis, more jobs were created by small companies and therefore entrepreneurs needed more support otherwise the situation would get worse.

"It's clear to me that we can get full employment, but wages are still depressed," Mr Schmidt told the forum.

"As more routine tasks are automated, this will lead to much more part-time work in caring and creative industries. The classic 9-5 job will be redefined," he said.

On the subject of privacy, Mr Schmidt said at "least we're having a debate now".

He added: "This is a luxury problem. The majority of people do not live in democracies and do not trust their government.

"It's not a debate they're having. For them, the ability to use the internet totally overwhelms their fear of how the government uses it."

More on This Story

More Business stories

RSS

BBC Business Live

  1.  
    BARCLAYS PROFITS 07:03:

    Barclays profit before tax is down 10% at £3.84bn.

     
  2.  
    BRITISH GAS BOSS 07:03:
    Iain Conn

    In all the excitement over bankers' bonuses we nearly forgot this. British Gas owner Centrica has succeeded in its pursuit of Iain Conn, confirming he will become its new chief executive from January 2015, succeeding Sam Laidlaw who is retiring. Mr Conn joins from BP where he has been chief executive, of BP's refining and marketing division,for the past seven years.

     
  3.  
    BARCLAYS PROFITS 06:52: BBC Radio 4
    Pedestrians pass a branch of Barclays Bank in the rain in London

    Michael Hewson, chief market analyst at CMC Markets is talking to the Today programme about Barclays interim results - coming up imminently. He says the investment banking arm of Barclays is "not listening" to new boss Antony Jenkins who has been trying to clean up the bank's reputation and practices.

     
  4.  
    DRIVERLESS CARS 06:44:
    Nissan car

    It's going to be a bank-heavy day today let's face it, but just to provide a break from all that, the government will be announcing changes in the law that will pave the way for driverless cars to take to Britain's roads next year. The government wants the UK to become a leader in developing the technology. In December, the Treasury said it would create a £10m prize to fund a town or city to become a testing ground for the cars.

     
  5.  
    MUSLIM ACCOUNTS 06:36:

    HSBC has told three Muslim organisations it will close their bank accounts. These are the Finsbury Park Mosque in North London, a think-tank on Islamic issues called the Cordoba Foundation based in West London, and a Muslim charity in Bolton called the Ummah Welfare Trust, which works in 20 countries giving aid. HSBC says the decisions were "absolutely not based on race and religion".

     
  6.  
    BANKER BONUSES 06:30: Radio 5 live

    More from Ms Mangwana on Wake Up to Money. She says the proposed seven year rule may be more about changing culture in banking and the way in which bankers view their bonuses. But she also points out bonuses are generally paid in tranches that vest over a number of years, already (commonly anything between three and five years). "That's the current formula and there are [already] mechanisms to reclaim those bonuses," she says.

     
  7.  
    TWITTER SHARES 06:21:
    Twitter

    In case this happened too late for you, Twitter shares rocketed 30% on stronger-than-expected financial results. Revenue more than doubled in the second quarter. Shares rose to $50 in after hours trading. Still down on its high of $74.73, hit in December.

     
  8.  
    BANKER BONUSES 06:10: Radio 5 live

    Samantha Mangwana, employment lawyer at Slater Gordon told Wake Up to Money seven years is a long time to hold a bonus and regulators may well find it difficult to reclaim money. It is highly likely bankers will have gone and spent the money already, she says, and have nothing that the Bank of England can reclaim.

     
  9.  
    BANKER BONUSES 06:07: BBC World News
    Tom Stephenson

    Those new rules on bankers' bonuses are expected to recommend a claw-back period of seven years. Tom Stephenson from Fidelity Worldwide on BBC World News says they could have been tougher: "One of the suggestions was that bankers could be jailed for a significant fall in profits - that's quite something isn't it. Even so, being able to claw back bonuses for seven years is pretty draconian."

     
  10.  
    06:02: Matthew West Business Reporter

    Good morning folks. It's looking like a busy day today. We also have trading updates from ITV and house builder Taylor Wimpey. As always you can get in touch via email at bizlivepage@bbc.co.uk and on twitter @bbcbusiness

     
  11.  
    06:00: Rebecca Marston Business reporter, BBC News

    Welcome again to the Live page. We're going to be banking heavy. There's Barclays results - in about an hour - and later this morning the Bank of England will release new restrictions on bankers' bonuses, said to be the toughest in the world. We'll see.

     

Features

From BBC Capital

Programmes

  • A digger operated via an Oculus Rift and a controllerClick Watch

    Why controlling a heavy digger with a virtual reality helmet might improve safety

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.