Technology Impact on Jobs – Introduction:
Employment in any industry is impacted by the introduction of new technology whose objective is to increase productivity. The initial result of such technological introduction is the reduction of workers to some extent. Let’s see the technology impact on jobs.
Increased digitalization and automation are expected to significantly affect both the quality and quantity of jobs. New types of jobs and employment are changing the nature and conditions of work by altering skills requirements and replacing traditional patterns of work and sources of income. They open opportunities, especially for developing countries, to enter new, fast-growing sectors and catch up with more advanced economies. At the same time, new technologies are affecting the functioning of labour markets and challenging the effectiveness of existing labour market institutions.
How does the Technology Impact on Jobs?
- The introduction of any technology has various consequences. These impacts occur in the environment, to existing and future technological developments, financial and social system in which the new technology is embedded.
- Future automation is unlikely to destroy complete occupations but will rather change the types and number of tasks in most occupations. According to the World Bank, less than 20 per cent of jobs are predicted to disappear completely.
- Jobs are typically made up of both readily automatable and not readily automatable tasks. This raises the question of whether the automation of work processes will result in a reduction of the workforce, or whether the remaining tasks might be shared among the existing workforces.
- Improving conditions for the creation and growth of new technology-based firms increases their direct job-creating potential, while indirectly contributing to economy-wide growth and job creation through higher productivity, lower prices and greater product variety.
- In the aggregate, technological change does not seem to have led to a significant increase in joblessness Global employment continues to expand in line with the labour force, bringing global unemployment rates down to 5.6 per cent (ILO, 2018). In advanced economies, the costs of digitalization have declined dramatically, but job destruction rates have fallen over the longer term.
Labour Market & Technology Impact on Jobs
- As an additional benefit, new technologies are expected to improve the functioning of the labour market, which could help in addressing risks of mismatch and longterm unemployment. The analysis of “big data” can also serve as a forecasting tool.
- An analysis of social media conversations about work-related anxiety resulted in the prediction of an unemployment spike in Ireland three months before the release of official statistics (United Nations Global Pulse, 2013).
- Artificial intelligence and big data techniques, for instance, are increasingly being implemented (by large enterprises) to improve recruitment processes, thereby helping to correct skills mismatches.
- Time saved by automating parts of the hiring process and improved hiring quality from standardized job matching can help enhance labour market efficiency.
Role of Digital Platforms:
- Digital platforms, such as LinkedIn and Monster.com, are already connecting individuals with work opportunities in both traditional and digital workplaces, as well as in developed and developing countries, thereby taking over tasks traditionally carried out by headhunters.
- These platforms can bring significant gains at both the micro and macro levels. online platforms could match workers and employers, yielding 72 million jobs and spurring global GDP by 2 per cent within the next decade.
Overcoming Technology Impact on Jobs
- New technologies, such as automation, artificial intelligence and industrial robots, are often seen as a real danger for existing jobs and also for future job-creation prospects . There is a perception that they will make work redundant and lead to massive job destruction.
- Ongoing technological advances offer new prospects for higher productivity and economic growth.
- However, they are also accompanied by growing concerns about their future impact on the workforce , especially in the current context of high and rising levels of inequality and polarization in the labor market.
- Concerns replacement technologies, which, through automation, eliminate and replace work in certain tasks that are repetitive, which subsequently leads to lower wages for these categories of workers. However, it is important to note that the overall impact on the workforce will depend on the productivity effect.
“Over the long term, new technology and production processes tend to promote productivity, competitiveness and economic growth, all of which contribute to job growth over time”
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