Technology is a job creator, not destroyer: EY survey

51% of entrepreneurs say investments in technology have changed their workforce

TORONTO, June 5, 2014 /CNW/ - According to a new EY survey, technology is a key driver of job creation among entrepreneurs. In fact, over half (51%) of the world's top entrepreneurs agree that investments made in technology have changed their workforce – 81% of those saying it's led them to hire.

"Entrepreneurs here and around the world are creating jobs and driving economic growth," says Colleen McMorrow, EY Partner and Canadian Strategic Growth Markets Leader. "There's a misconception that technology will reduce jobs, but that's simply not what we're seeing with entrepreneurial companies. Our survey finds technology is helping these companies increase their cost competitiveness and efficiency, which in turn allows them to invest in their businesses and expand their workforces."

EY's Global job creation survey also finds entrepreneurs are increasingly global in their outlook and are exploiting the opportunities that technology brings them to tap the global talent pool and address skills shortages in their home market.

"Technology and mobile working is opening up a greater and more skilled pool of workers for entrepreneurial companies," says McMorrow. "Companies are no longer constrained by having to hire from the obvious pools of talent, as technology enables employees to do their jobs from anywhere, inside or outside the physical walls of the organization."

The survey finds companies in the technology sector are leading the way when it comes to employment growth – they created jobs in 2013 at a higher median pace, compared to job growth among all entries in all sectors.

"In Canada, tech companies achieved a 36% job growth rate, while sectors overall clocked in at 25%," says McMorrow.

Other highlights from the survey include:

• 76% of entrepreneurs surveyed plan to increase the size of their workforce in the year ahead – by an average of 19%
• 85% of entrepreneurs surveyed who invested in technology say it drives their plans for future growth
• 64% of women entrepreneurs surveyed cite the more mobile workforce as an asset enabled by technology (versus 41% of men)

"Entrepreneurs are innovators, and they're not afraid to take risks," says McMorrow. "Through varied business conditions, entrepreneurs keep going forward and growing. And now more than ever, technology is enabling them to drive that growth."

About EY Global Job Creation Survey
The EY Global job creation survey is the third annual survey into the views of previous finalists of the EY World Entrepreneur of the Year program that started in 2000. 243 entrepreneurs were surveyed in April 2014.

About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY is proudly celebrating 150 years in Canada. For more information, please visit ey.com/ca. Follow us on Twitter @EYCanada.

EY refers to the global organization and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

SOURCE: EY (Ernst & Young)

Erika Bennett, [email protected], 416 943 5497; Sarah Shields, [email protected], 604 648 3607; Julie Fournier, [email protected], 514 874 4308