Diversity and

the Age of
Automation
Why the US has an imperative to bring
a diverse workforce into the future.
Education is a powerful force for equity and change in our world. It has the potential
to deliver the opportunity that improves lives and enables economic mobility.
As the world’s leading learning company, we add life to a lifetime of learning so everyone can realize
the life they imagine. This is accomplished by creating vibrant and enriching learning experiences and
focusing on the needs of our diverse consumers. Our evolution towards advancing inclusion and
diverse representation is reflected in workforce commitments, workplace culture, and product
development. In order to bring vibrant products to life, it is important that employees feel a sense
of belonging and contribute to innovation.

With that in mind, Pearson leads responsibly. We are committed to increasing racial, ethnic, and
gender diversity at the managerial levels of the company. Diversity, equity and inclusion are
centered around four key pillars: recruitment and promotion, retention, inclusive culture, and social
impact. We are advancing a five-year strategy that includes inclusive hiring, expanding talent
mobility efforts and building diverse partnerships. In each area, Pearson has multiple initiatives in
progress, which are tracked and assessed at a regular cadence. In doing so, we have committed to a
corporate culture that is inclusive and equitable, where all employees feel respected and valued.

This commitment manifests in a variety of initiatives at Pearson. Our reframed Global Content and
Editorial Policy empowers our employees and suppliers to create diverse, equitable, and inclusive
content. The comprehensive policy ensures we provide learners and consumers with products and
services that incorporate anti-bias principles, focusing on people who experience distorted
representation, exclusion, and historical and contemporary marginalization. We are also committed
to establishing and growing partnerships with diverse suppliers to build more working relationships
with partners who share our values — and to reflect these values in our learning solutions. And, we
are making an effort to share more information and resources with educators and students about
critical social issues through our recently launched social equity page.

Diversity and Inclusion in the US © 2021 Faethm Pty Ltd. All rights reserved
Our Employee Resource Groups (ERGs) provide a place where colleagues with shared interests, characteristics,
and/or life experiences can come together. Aligned to Pearson’s missions, values, and business goals with
chapters located around the world, these networks are for women, parents, veterans, employees identifying
as Hispanic or Latinx, the LGBTQ+ community, generational differences, people with disabilities, employees of
Black and/or African ancestry, and a group representing Black, Asian and minority ethnic people. The groups
are also open to employees who wish to expand their cultural awareness of a range of intersectional identities.
The ERGs, along with taskforces and steering committees developed to address challenges and maximize
opportunities around specific DEI topics, are instrumental in helping us harness the different perspectives that
are critical to building a more inclusive culture.

Additionally, we are proud of being a participant in

innovative initiatives and the recipient of awards
that recognize our commitment to DEI and being a
supportive place to work, including: Learning is the pursuit of bettering
yourself and, as a company,
• Stonewall WEI – Pearson was recognized as a Pearson is committed to action.
Stonewall Top 100 company for LGBT+
inclusion as a result of our benchmarking to
the standard.
Today’s change-driven social landscape
• Human Rights Campaign - Pearson received
requires us to demonstrate organizational
90% on the Human Rights Campaign
values. These include thinking and acting more
Foundation’s Corporate Equality (CEI) Index inclusively. We have made progress with
for 2022, a primary driving force for LGBT+ diversity, equity, and inclusion, and will
workplace inclusion.
continue to hold ourselves accountable for
having greater global impact through increasing
• Disability:IN recognized us as a Best Place to
our efforts around these values.
Work for Disability Inclusion in the US. The
index measures policies and practices on a
scale from 0 to 100 with a score of 100
awarded to those companies deemed most
inclusive.

• Bloomberg Gender Equality Index – We

were listed on the Bloomberg Gender-
Equality Index for 2022, which recognizes
companies investing in women in the Dr. Florida Starks
workplace, the supply chain, and in the
communities in which they operate. SVP Chief Diversity Officer, Pearson

Diversity and Inclusion in the US © 2021 Faethm Pty Ltd. All rights reserved
The current COVID-19 crisis is disproportionately impacting marginalized communities
in the workplace. As technology acquisition across all industries continues to accelerate,
disparities are likely to be further exacerbated. Companies have a responsibility to make
intentional decisions to bring all constituencies of people along, not only as a social imperative,
but also out of need. By hiring from the talent pool of women and under-represented
groups, organizations will be better equipped for success post-pandemic and beyond.

The unprecedented workplace transformation that In addition to these trends, as organizations are
occurred in 2020 as a result of the COVID-19 dealing with the uncertainty of the recession,
global pandemic impacted the workforce in a way they are quickening technology adoption to
not seen since the Great Depression. Unfortunately, counteract slowdowns associated with shutdowns.
certain communities have borne the brunt of these These actions are taken to de-risk work and
economic and physical impacts due to a multitude the workforce and maintain viability in the
of different factors, including the nature of work uncertainty of the continued crisis.⁹ This expedited
performed by individuals in these communities. Across digital transformation is motivated by a range
the board, ethnic minorities, women, and younger of factors, including cost savings in the face of
Americans have experienced a disproportionate severe economic downturn, reducing the level
amount of the economic impacts of COVID-19 ². In of human interaction/risk of exposure in certain
particular, we have seen that jobs in industries with roles, making work less human-dependent (e.g.
greater human interaction, and jobs with low and self-service checkouts in grocery stores), or
medium skill-levels, have been most vulnerable. increasing and scaling speed of operations. ³
This tech adoption comes with a corresponding
Given that the majority of positions in these
people impact, as workers are either automated
categories tend to be held by women, minorities,
out of roles (forcing them to shift career paths),
and younger Americans, the majority of the
or as workers are required to reskill and upskill in
40 million underemployed or unemployed
order to keep pace with the evolution of work.10
Americans are disproportionately comprised of
Unfortunately, this faster pace of technology
these marginalized communities. ¹ ² ³ ⁴ 5 ⁶ ⁷ ⁸
adoption is likely to only further increase inequalities
in the labor market, unless intentional action is taken.

To put it simply, automation, or the replacement

In a recent Twilio survey, 97% of of a task with technology, and augmentation,
the potential improvement of a task’s efficiency
executives interviewed say they’ve sped through technology, may only further increase this
up digital transformation because of inequity in race and gender demographics across
COVID, and 79% say they’ve increased the U.S. This is not because digital transformation is
their digital transformation budgets. inherently biased, but because certain marginalized
populations are more likely to occupy jobs in
(Forbes, Sept. 2020) industries that have high automation potential. 4

Diversity and Inclusion in the US © 2021 Faethm Pty Ltd. All rights reserved
The following analysis demonstrates this point
by leveraging data from multiple US government
survey data sources (detailed in the appendix)
and Faethm’s proprietary analytics engine to
demonstrate current state and projected impact on
these diverse communities across the United States.
The proceeding analysis provides information at Although automation does not necessarily correlate
the state level, however further information at the to job loss, it often requires significant reskilling
county level can be made available upon request. and, potentially, career changes for the individuals
in those roles to be viable in the market.
To demonstrate the disproportionate impact of
accelerated digital transformation in the US, we In this paper, we also focused on a few industries
calculated the impact of potential automation and which are the most populated and have been
augmentation across a wide variety of industries, hardest hit by COVID-19 including retail, food
broken down by gender identity and race. services, healthcare and education. In addition,
Ultimately, we make the assumption that we’ve shown impact across the financial services
empowering the workforce through augmentation is industry given the industry has some interesting
favorable to replacing workers through automation. trends around ethnicity and gender diversity.

Figure 1
Distribution of Risk of Exposure to COVID-19
Top five most populated roles per industry

There is nothing about

a person’s gender,
ethnicity, or age that
makes them more
or less vulnerable to
technology. These
trends are all about
the industries and
jobs that populations
work in, the roles they
inhabit, and often the
job opportunities that
are available to them
because of geographic
or structural limitations.

Placement on the graph represents the degree of human interaction and remoteability of a role,
corresponding to potential exposure to COVID-19. Size of circle indicates size of the workforce.

Diversity and Inclusion in the US © 2021 Faethm Pty Ltd. All rights reserved
High-level methodology and data sources
The data for this paper comes from multiple sources across the US census, including from the Bureau
of Labor Statistics (BLS), Occupation Employment Statistics (OES) and the Equal Employment
Opportunity Commission (EEOC) for 2020.

In order to unearth meaningful nuances across industries and roles, we have normalized the number
of full time equivalents (FTEs) depending upon racial categories. For example, to account for the
fact that White people have the highest number of FTEs across industries, we have developed a
mechanism to account for under or over-representation of certain groups compared to the mean.

More details are described in Appendix A.

COVID-19 is further marginalizing By and large, Black, Hispanic and other ethnic
minorities tend to work in industries where the
the most vulnerable risk of exposure to COVID-19 is higher. Roles in
healthcare, food services, education, and retail
Ample research has been performed on the health
require workers to be in close contact with others.
and financial impacts of the global pandemic and
The graphic below elucidates this trend further.
resulting recession. Faethm’s data corroborates
this research and provides insights into underlying
Figure 2 shows that Black Americans have
workforce and technology trends that contribute
an above-average representation in the food
to, or influence, the impacts of COVID-19.
services, healthcare and retail industries, and an
under-representation in finance and education.
Unfortunately, the communities hardest hit by the
pandemic are already vulnerable. Black, Hispanic/
We can see this very clearly by mapping roles
Latinx, Native American and Pacific Islander
commonly held by people of color (non-White
communities experience infection and death rates
Americans) across the same remoteability graph.
two to three times the national average. ¹¹

While there are numerous causal factors⁷ that

contribute to these high infection rates in these
communities, workplace data analyzed by Faethm
suggests that a major causal factor is the type
of role that's commonly filled by workers from
marginalized backgrounds.

Diversity and Inclusion in the US © 2021 Faethm Pty Ltd. All rights reserved
Figure 2
Over or Under-representation of Ethnic groups by Select Industries, Compared to National Averages 8
Delta = deviation from the national population distribution.

In the healthcare industry, 72% of Black and Hispanic workers fill positions that are considered
high-risk for COVID-19 infection, compared with 65% of White workers, despite White people
outnumbering Black and Hispanic people by more than two to one in the industry. Across all
industries, people of color (POCs) are more likely to be over-represented in high-risk roles than
White people.
(Faethm Analysis on US Census Workforce)

Diversity and Inclusion in the US © 2021 Faethm Pty Ltd. All rights reserved
Not only are individuals within these industry sectors at higher risk of contracting the virus,
but their work cannot be performed effectively in remote or mandatory lockdown situations.
Practically, this means these communities face joblessness and underemployment, and have
a high need to upskill rapidly and take hold of opportunities to change careers. In June 2020,
Black and Hispanic people experienced 16%+ unemployment, three percentage points above
the national average¹² and nearly four percentage points more than the White population.

Similarly, when we look at the impact of gender on these trends, women tend to dominate
those industries that are most impacted by COVID-19 and joblessness. This resulted in a
massive exodus of women from the workforce in the summer of 2020, at four times the
rate of men¹³. One statistic cited that 100% of all job losses in the US were sustained by
women¹⁴. Other compounding effects of job loss by women (and particularly women of
color) are the closures of schools and daycare centers, leaving women without access to
support systems that enable them to remain in the workforce. ⁹

Figure 3
Average Remoteability for Roles with High Numbers of Color
Roles where people of color are overrepresented in select industries

Each bubble represents a role. The size of the bubble represents the number of people of color in the role.
Placement on the graph represents the degree of human interaction and remoteability of a role, corresponding
to potential exposure to COVID-19.

Diversity and Inclusion in the US © 2021 Faethm Pty Ltd. All rights reserved
Table 1
Percentage of Male and Female FTEs in Select Industries

Org Level 1 Female Male

“…layoffs and furloughs only explain
Accommodation and Food Services 53.68% 46.32% part of the picture. Many women are
Educational Services 63.60% 36.40% leaving the workforce not because
Finance and Insurance 60.52% 39.48%
their jobs have vanished but because
their support systems have.”
Health Care and Social Assistance 78.90% 21.10% –Time Magazine, October ‘20
Retail Trade 52.33% 47.67%

Women hold the majority of positions in all five of the industries

that place workers at high risk of contracting COVID-19.

Adding insult to injury - digital

transformation is the great accelerant
In addition to the impact of COVID-19 on these marginalized communities, companies are now significantly
increasing their digital transformation efforts in order to effectively adapt to the uncertain environment of the
global pandemic. Thus, the disruptive impact of technology on the workforce has also accelerated, leaving
companies and workers scrambling to adapt to a shifting employment landscape.

Faethm’s data shows that many of those marginalized communities who have been hardest hit by the pandemic
are also those that are most at risk of job disruption through AI and other robotic technology deployment.
These trends were already in place prior to the rapid digital transformation uptick but are adding another layer
of stressors and complexity on already hard-hit communities.

Diversity and Inclusion in the US © 2021 Faethm Pty Ltd. All rights reserved
Role transformation is unequal – people of color face
the double whammy of COVID-19 and tech job disruption
Faethm’s data tracks the impact of AI and robotic Figure 4 shows that Asian men and White men hold
technology on the workforce across 16 technology roles that are consistently the least automatable
categories. Roles are likely to be transformed across the select industries, while Hispanic and Black
by these technologies in one of three ways: by women hold roles with the highest risk of automation.
automation (the potential risk of replacement of
a task by technology), augmentation (work made Why might this be the case? Some roles are inherently
more efficient through technology) or addition (net more automatable than others, due to the prevalence
new roles that could be added to the workforce to of repeatable, repetitive and generally low-skilled
implement, maintain and use different technologies). tasks. Unfortunately, the data show that these lower-
skilled, automation-prone roles also happen to be
When we overlay technology trends onto the occupied by people of color.
COVID-19 impacts on the workforce, we see similar
trends of women, Black and Hispanic communities The numbers in Figure 4 represent the percent of potential automation
being more susceptible to job disruption through the risk of the select group. Women are in light blue and men are in dark
replacement of tasks by technology. blue. The further right the indicator, the more augmentable the roles
that group holds. Women of all races occupy roles at greater risk of
automation across industries; Hispanic, Black, and Other ethnicity groups
occupy roles that are at greater risk of automation than roles held by
White and Asian populations.

Figure 4
Automation Rates by Race and Gender in Select Industries, 2031

Diversity and Inclusion in the US © 2021 Faethm Pty Ltd. All rights reserved
Figure 5
Comparing role resilience for Black, Hispanic, and White populations

Non-critical Future-critical Organizationally-critical

For example, if we deep dive on the healthcare industry, which has an above-
average representation of Black Americans, we see that nearly 90% of the
Black workers reside in roles with very easily replaceable skills, which puts
them at greater risk of job loss. The same is true for Hispanic workers in
healthcare. This is significantly different than White people in healthcare, with
only 75% of populations holding easily replaceable skills.

Practically, this means individuals in roles most prone to disruption may need
to completely shift careers in order to remain employable in the market.
Though all communities will require skills uplift in the future to remain
competitive, those in roles at greatest risk of automation may experience
the most job disruption in the short-term. See page 12 to explore potential
career transition pathways for these at-risk roles.

Diversity and Inclusion in the US © 2021 Faethm Pty Ltd. All rights reserved
Is the future female? Interestingly, there is only one industry where
women show higher augmentation rates than
men - education. Across all groups in this industry,
How to make it so women of color fill roles with higher augmentation
rates than men. Why is this? It goes back to the
nature of the work done by women in education.
The data above show us that women (and, in particular,
women of color) are at greatest risk of automation in The numbers in Figure 6 show a comparison of
these select industries, suggesting again that career the percentage to which roles are augmented for
transformation may be required to remain employable in women and men by ethic group. Women are in
the labor market. light blue and men are in dark blue. The further
right the indicator, the more augmentable the
The inverse also is true. Men, regardless of race, fill roles roles that group holds. Women of all races are less
that tend to be more augmentable across industries, augmentable than men across industries, except for
implying greater short-term career stability. education. In finance again we see vast disparities
between men and women.

Figure 6
Augmentation Rates in Select Industries by Race and Gender, 2031

Diversity and Inclusion in the US © 2021 Faethm Pty Ltd. All rights reserved
 Figure 7
Compared to the chart in the Role resilience for White women in Education
section above, which explores
the types of roles occupied by
Black men in healthcare, women
in education occupy roles with
higher-level skills which are
harder to replace and are easier
to augment. 50% of women in
education occupy roles that can be
made more efficient by technology
and thus have longer-term future
viability through upskilling. Non-essential Organizational-essential Future-essential

Forewarned is forearmed -
you need a diverse workforce
How then can we make sure more opportunities exist for diverse groups of people
despite these disruptive trends? As digital transformation accelerates, we have an
opportunity and responsibility to ensure these marginalized groups are brought
along. Workforce diversity has tangible benefits. A diverse workforce improves
productivity, innovation and employee retention, all strengths for every organisation.

But these facts alone are no longer an incentive. It’s a necessity to have the supply
of labor needed to return to our pre-pandemic levels of productivity.

Companies and governments have a responsibility to develop career transition

pathways to retain their most marginalized workers and put in place mechanisms
to ensure worker employability into the future. Not only will this be a necessity for
productivity and employability of American workers in the short-term but upskilling
of these professionals is a necessary baseline to be able to be effective due to the
evolving nature of work. Absent this upskilling, it will be hard for professionals to
take on more complex (non-automatable) tasks in the future.

Diversity and Inclusion in the US © 2021 Faethm Pty Ltd. All rights reserved
These actions might include:

• Investing in upskilling and reskilling career transition pathways for the most impacted workers (see below)
• Taking advantage of the leapfrog effect—hiring for roles that will be needed in the digitally transformed world
• Heavily recruiting women and POCs post-pandemic
• Exploring supportive policies and benefits that will bridge support care gaps
• Increasing investment in cybersecurity and infrastructure to enable permanent remote work
• Promoting women and minorities to senior positions, which are less likely to be impacted by technology

Potential career transition opportunities Companies have an imperative to ensure that

using Faethm’s Job Corridor actions taken now reverse these trends. Employers
must make data-driven decisions to mitigate the
Two of the most automatable roles from the impact of technology transformation on diverse
industries discussed in this paper are Tellers communities and make direct interventions to
and Medical Administrative Assistants. These counteract these trends.
positions also happen to have a higher-than-
average representation of Black Americans. As these impacts disproportionately affect
marginalized communities, companies should take
Faethm’s Job Corridor suggests transitions to extra care to ensure their actions help, not hinder,
other, lower-risk roles with similar skills and these groups. This should be driven not just by a
attributes. Tellers (78% task automation by moral imperative or even a need to meet diversity,
2031) might consider careers as: equity and inclusion (DEI) targets, but because it
• Computer User Support Specialists is a necessary condition to bridge the forthcoming
• Quality Assurance Analysts labor gaps in the market.
• Change Managers
They can do that by taking a human-centric view of
Medical Administrative Assistants (67% technology projects, whether they are automating
automation by 2031) might consider careers as: and augmenting, and to plan well in advance.
• Home Health Aide Our collective inequalities arise from many small
• Nursing Assistant workforce decisions, but they do add up. The post-
• Computer Systems Analyst COVID economic climate makes it easier to forget
that these small decisions have big consequences
on our teams, colleagues, and in the bigger pictures,
our societies and our collective social climate.

Diversity and Inclusion in the US © 2021 Faethm Pty Ltd. All rights reserved
Appendix A: Report Methodology
The geeky stuff

Projection of the impact of The data we apply in Faethm modeling is collected

from multiple respected sources. Our core jobs
emerging technology data is an extension of the most comprehensive
dataset on jobs, O*NET. Faethm’s technology
Emerging technology can impact the Evolution readiness and adoption rates across 152 countries
of Work both indirectly and directly: indirectly by and 19 industries are fuelled by research from
disrupting an entire industry, impacting part of WEF, INSEAD, Cornell, and McKinsey.
an industry’s value chain, or replacing an entire
business process; or directly by impacting a In this study of the US workforce, the Faethm
job or job task. In this study, we have focused model is applied to government-collected census
our analysis on the direct impact of emerging and employment survey data: EEOC (at 2018)
technology on jobs and work tasks. provides data on ethnicity, gender, occupation
category and detailed industry headcount at
The Faethm model begins with an assessment of the county level; OES (2019) provides detailed
whether a job is automatable or not. We apply occupation, salary, and headcount for detailed
a support vector machine (SVM) that learns industries and state; BLS (at 2020) provides
from expert elicited labeling of jobs data. The detailed industry headcount at a national level.
SVM learns what skills are associated with being Automation and augmentation impacts are
automated, and any job analyzed by the model is presented for 2030, ten years from now.
given a probability of Automation. In addition to
the SVM, the Faethm model applies an analysis
of work tasks and technology-to-task impact Modeling future job demand
over time. A natural language processing (NLP)
approach is used to assign one of 16 emerging We apply an industry-based economic demand
technology types to a work task (see figure on model to calculate the growth, or decline, in labor.
Faethm’s technology taxonomy). Demand projections are made by considering
the workforce required for a country to meet
The SVM is combined with the task model to its industry-specific growth-rate expectations
identify which jobs and tasks may be impacted (derived from historic GDP and labor productivity
by a specific technology and whether a task is growth) and is calculated for every year to
likely to be automated or augmented. Adoption 2030. The impact of technology on improved
scenarios over ten years are also applied to each labor productivity is considered by including our
technology-to-task combination and adjusted by projections of augmentation and automation to
industry-specific technology adoption rates. the workforce.

Diversity and Inclusion in the US © 2021 Faethm Pty Ltd. All rights reserved
Faethm Technology Taxonomy
Scope of Faethm model
(predictable future)

Year 1 Year 15

Programmed AI Narrow AI Broad AI Reinforced AI

Pre-defined technologies Reactive technologies Proactive technologies Self-improving technologies

Process Automation Predictive Analysis Sensory Perception Navigation Robotics

Code programmed to complete Tools that reactively use ML to Systems that use ML and Robots a=using RL and sensors
pre-defined, logical and rule conduct narrow analysis and sensors to detect and extract to navigate autonomously in
based process tasks. make related predictions. meaning from external stimuli. unstructured environments.

Fixed Robotics Recognition Vision Decision Generation Collaborative Robotics

Fixed robots that handle and Tools that reactively use ML Systems that use ML to evaluate Robot using RL and sensors to
manipulate objects in a pre- and sensors to recognize and input data to determine the best co-contribute to generating
defined way. classify data meaningfully. course of action. shared meaning.

Mobile Robotics Suggestion Provision Conversation Exchange Solution Discovery

Mobile robots programmed Tools that reactively use ML Systems that use ML and Agents using RL and sensors to
to move between points in a to prioritize data to identify sensors to interpret and digest and solve unstructured,
controlled environment. relevant recommendations. engage in conversation. complex problems.

Dexterous Robotics Generative Design

Robots with flexible functions Agents using RL and sensors
capable of adapting dynamically to interpret creative data and
using sensors and ML. generate concepts.

Creative Origination
Agents using RL and sensors to
invent new and original concepts
beyond known data.

Assistive Robotics
Robots using RL and sensors to
physically interact with humans
in an emotive manner.

Extent of human input

Dependent (relies on human ability) Collaborative (works alongside human ability)

AI maturity and existence

Commercialized (developed with widespread adoption) In R&D (prototyped with limited adoption)

Diversity and Inclusion in the US © 2021 Faethm Pty Ltd. All rights reserved
 Excluding academic research, no product or
Faethm's approach to data service providing analysis of workforce data –
that we are aware of – is evaluated or validated
quality and validation using scientific methodologies. Of particular
importance is our peer-review process. All
We consider data and model quality to be of components of the Faethm model are written
the utmost importance to our clients. We have (or in the process of being written) with the
invested time in building a robust scientific required rigor of a scientific research paper and
approach to evaluation and validation that would submitted for peer review. As with all academic
be typical of high-impact academic research. research, peer review provides independent
critique by domain experts. Such review ensures
Briefly, we are conducting four programs of acceptance of our approach to modeling and
validation, now and ongoing: model evaluation, and provides further validation.
Research organizations we have worked with
1. Element Analysis - isolation of model include Macquarie University; UNSW Sydney;
components to test statistical validity of University of Technology, Sydney; and University
individual parts of Tasmania. Further, we have worked with global
organizations who have assisted in reviewing and
2. Ensemble Analysis – to explore uncertainty validating our modeling in a commercial context.
from internal variability through comparison to These organizations include Aon, Toronto
alternative methods Innovation Acceleration Partners (formally
MaRS), MIT, Servicenow, DXC, Qantas, Australian
3. Proxy Analysis – comparison to real observed Computer Society, KPMG, and RMIT.
outcomes; and finally
Recently, we have worked on a joint publication
4. Scientific Peer Review – academic-quality with the Boston Consulting Group (BCG) to
technical white papers have been written and assess the impact of technology on the US,
distributed for academic peer review German, and Australian workforces. As part of
this collaboration, our data and methodologies
Our approach provides confidence in our were validated by a global team of BCG data
modeling, where traditional time-series methods scientists and economists, as well as the chief
are not applicable. Overall, the Faethm model is economic advisor to Angela Merkel.
determined to be a robust and validated approach
to project the future impact of technology on Overall, the Faethm model is determined to
work. For example, Faethm’s machine learning be a robust and validated approach to project
algorithms are highly accurate with both precision the future impact of technology on work. Our
and recall scoring in the range of 80% to 99%. This research paper further describes our approach to
statistic tells us that our modeling is sound. evaluation and validation.

Diversity and Inclusion in the US © 2021 Faethm Pty Ltd. All rights reserved
Page notes
1. https://www.pewresearch.org/fact-tank/2020/06/11/unemployment-rose-higher-in-three-months-of-covid-19-than-it-did-
in-two-years-of-the-great-recession/
2. https://www.pewsocialtrends.org/2020/09/24/economic-fallout-from-covid-19-continues-to-hit-lower-income-americans-
the-hardest/
3. https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/how-covid-19-has-pushed-com-
panies-over-the-technology-tipping-point-and-transformed-business-forever
4. There are multiple reasons why this fact is true… include reference to research.
5. Gender identity in this instance refers to a person’s self-reported sex, male or female. More granular analysis can be performed on
diverse gender identities once this is consistently reported.
6. Race is represented using standard categories from the US Census Office of Management & Budget’s designation, including ‘White,
Black or African American, American Indian or Alaskan Native, Asian, Native Hawaiian or Pacific Islander, Hispanic or Latino.’ Given
the available data, American Indian, Alaskan Native, and multi-racial groups have been combined for this analysis. We recognize
that this is imperfect and doesn’t reflect the nuances of these unique communities of people. Consistent information is not avail-
able for those listed as ‘Multi-racial’ or other racial identities and thus are not represented in this analysis. https://www.census.gov/
topics/population/race/about.html
7. Lack of access to healthcare, co-morbidities like diabetes or obesity, housing instability, and discrimination in the healthcare system
in the US are some often cited causal factors, outside of position. https://www.cdc.gov/coronavirus/2019-ncov/community/
health-equity/race-ethnicity.html
8. This chart shows the Delta values for the five industries most impacted by COVID. A Delta value represents the difference between
a particular ethnicity’s percentage of the overall population and the percentage of FTEs occupied by people of that ethnicity within
an industry or role. For example, Hispanic people represent approximately 15% of the US population, but they occupy 24% of FTEs
in the Accommodation industry, giving them a Delta value of 9. A positive Delta value indicates that the ethnicity in question is
overrepresented in that industry, a negative Delta value indicates underrepresentation.
9. “Layoffs and furloughs only explain part of the picture. Many women are leaving the workforce not because their jobs have
vanished but because their support systems have. More than half of U.S. elementary and high school students are now attending
online-only classes, according to a recent study by Burbio, a software company that aggregates school and community calendars.
And roughly 40% of childcare centers surveyed in July by the National Association for the Education of Young Children reported
that they were doomed to shutter permanently without significant government assistance—which never materialized.” https://
time.com/5900583/women-workforce-economy-covid/
10. https://www.forbes.com/sites/johnkoetsier/2020/09/10/97-of-executives-say-covid-19-sped-up-digital-transforma-
tion/?sh=40a6cfa84799
11. https://www.cdc.gov/coronavirus/2019-ncov/covid-data/investigations-discovery/hospitalization-death-by-race-ethnicity.html
12. https://www.bls.gov/web/empsit/cpsee_e16.htm
13. https://www.npr.org/sections/coronavirus-live-updates/2020/10/02/919517914/enough-already-multiple-de-
mands-causing-women-to-abandon-workforce?utm_source=PepTalkHer+Master&utm_campaign=dd1cd8bae5-EMAIL_CAM-
PAIGN_2020_09_16_06_20_COPY_02&utm_medium=email&utm_term=0_621a65e9bc-dd1cd8bae5-187492417
14. https://fortune.com/2021/01/08/covid-job-losses-women-december-us-unemployment-rate/

Diversity and Inclusion in the US © 2021 Faethm Pty Ltd. All rights reserved
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