Every one job in Cloud Platforms creates 22 jobs in Data Science! — DeCypher DataLabs

Leith Akkawi
Aug 19, 2019 · 3 min read

Hypothesis: The NAICS 54 [Data Science] jobs need data. The NAICS 518 [Cloud Platforms] jobs create data. Is there a casualty and correlation? The hypothesis is that the more jobs in data processing and hosting services (Cloud Platforms) created, the more jobs in Professional, Scientific, and Technical Services (Data Science) are created. The hypothesis has valid casualty.

Let’s relabel the NAICS codes with more simple business terminology.

  • The Definition of NAICS is North American Industry Classification System.
  • NAICS 518 [Cloud Platforms] for Data Processing, Hosting, and Related Services
  • NAICS 54 [Data Science] for Professional, Scientific, and Technical Services

In July 2019, employment increased by 11,000 in computer systems design and related services. Researching the NAICS codes for the source of this job growth, these jobs link back to code NAICS 541500, which is Computer Systems Design and Related Services. NAICS 541500 is derived from code NAICS 54 code, which is composed of the following Professional, Scientific, and Technical Services:

  • Legal Services: NAICS 5411
  • Accounting, Tax Preparation, Bookkeeping, and Payroll Services: NAICS 5412
  • Architectural, Engineering, and Related Services: NAICS 5413
  • Specialized Design Services: NAICS 5414
  • Computer Systems Design and Related Services: NAICS 5415
  • Management, Scientific, and Technical Consulting Services: NAICS 5416
  • Scientific Research and Development Services: NAICS 5417
  • Advertising and Related Services: NAICS 5418
  • Other Professional, Scientific, and Technical Services: NAICS 5419

Chart 1 Below: NAICS 54 [Data Science] employment statistics between 1990 and 2019

Chart 2 Below : NAICS 518 [Cloud Platforms] employment statistics between 1990 and 2019

Analysis: There is a liner growth pattern for both Professional, Scientific, and Technical Services (NAICS 54 — Data Science), and Data Processing, Hosting, and Related Services (NAICS 518 — Cloud Platforms) between 2011 and 2019.

Correlation — Let’s calculate the gradient of job growth:

NAICS 518 [Cloud Platforms] Data Processing, Hosting, and Related Services:

  • Jan 2011 = 242.8 All Employees, Thousands
  • Jan 2019 = 329.4 All Employees, Thousands
  • Note: Linear growth line in the past decade

NAICS 54 [Data Science] Professional, Scientific, and Technical Services

  • Jan 2011 = 7585.7 All Employees, Thousands
  • Jan 2019 = 9456.7 All Employees, Thousands
  • Note: Linear growth line in the past decade

Apply simple calculation for gradient:

  • Gradient = (9456.7–7585.7)/ (329.4–242.8) = 21.6 ~ 22 All Employees, Thousands

Conclusions:

  • Every one job in Cloud Platforms creates 22 jobs in Data Science!
  • Fortune 500 companies and other organizations are investing in Cloud Platforms and expanding their universe of data, and simultaneously hiring more Data Scientists.
  • While this leads to more scientific breakthroughs and decision automation, can we expect job growth to continue at the same rate in the industries of Cloud Platforms and Data Science, and other industries, over the next year or two?
  • If 90% of Fortune 500 companies have already invested in Cloud Platforms, the growth of data and jobs in this field would probably plateau. Thus, a bubble.
  • If the scientific breakthroughs and AI automated decisions create new work for the existing workforce, then we can expect job growth in existing and new industries. Thus, a miracle.
  • At a point in the very near future, we will discover whether AI is an economic bubble or a miracle.
Image by David Schwarzenberg from Pixabay

Originally published at https://www.decypherdatalabs.com on August 19, 2019.

Leith Akkawi

Written by

Founder & CEO at DeCypher DataLabs LLC https://www.decypherdatalabs.com/

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