Future of Work
ILO: Digital technology disrupts the labour market in various ways and accentuates inequalities
At a conference of the EU Public Employment Services Network, the ILO discussed the rapid digital transformation affecting the labour market and the impact it has on skills, lifelong learning and inequalities.
The ILO addressed the Public employment services network stakeholder conference, exploring the labour and skills shortages affecting Europe’s labour market now and into the future. Sukti Dasgupta, ILO Branch Chief of EMPLAB, recognized the economic dividends that digital transformation can bring, such as efficiency and productivity gains, innovation in work arrangements, improvements in job quality and productivity gains. Thanks to digital technology, many workers were able to keep their jobs during the COVID-19 crisis.
“The rapid digital transformation we are experiencing does carry sizeable challenges,” said Ms Dasgupta. Not everyone can reap its benefits, and this can accentuate existing inequalities.
To ensure inclusion, investments are needed, first, so that digital technology becomes more accessible at reasonable prices, and second, so that skills and training systems align with new technology and support workers in their lifelong learning.
Certain groups which are already disadvantaged, risk being further affected by the labour market transformation and disruption caused by digital technology, such as women, middle and low-skilled workers and workers with vocational training.
One of the clear trends in skills demanded in today’s labour market is the ability to work collaboratively and perform multidisciplinary work, whilst also being able to use digital technology. “Digital skills should be part of early learning, compulsory and secondary school curricula,” said Ms Dasgupta. Teaching methods should be reoriented to deliver digital and core work skills.
Public employment services (PES) play a critical role in a well-functioning labour market, by facilitating the efficient matching of supply and demand, enhancing the employability of the workforce, and promoting the inclusion of vulnerable groups in the labour market. They can do more to identify and anticipate skills changes and trends, and become a career partner of jobseekers, helping them navigate the labour market.
“In order to perform this and other functions properly, PES must strengthen their capacity to adapt themselves internally to changing labour markets, increasing fiscal consolidation, and frequently changing demands of their clients,” she concluded.
“The rapid digital transformation we are experiencing does carry sizeable challenges,” said Ms Dasgupta. Not everyone can reap its benefits, and this can accentuate existing inequalities.
To ensure inclusion, investments are needed, first, so that digital technology becomes more accessible at reasonable prices, and second, so that skills and training systems align with new technology and support workers in their lifelong learning.
Certain groups which are already disadvantaged, risk being further affected by the labour market transformation and disruption caused by digital technology, such as women, middle and low-skilled workers and workers with vocational training.
One of the clear trends in skills demanded in today’s labour market is the ability to work collaboratively and perform multidisciplinary work, whilst also being able to use digital technology. “Digital skills should be part of early learning, compulsory and secondary school curricula,” said Ms Dasgupta. Teaching methods should be reoriented to deliver digital and core work skills.
Public employment services (PES) play a critical role in a well-functioning labour market, by facilitating the efficient matching of supply and demand, enhancing the employability of the workforce, and promoting the inclusion of vulnerable groups in the labour market. They can do more to identify and anticipate skills changes and trends, and become a career partner of jobseekers, helping them navigate the labour market.
“In order to perform this and other functions properly, PES must strengthen their capacity to adapt themselves internally to changing labour markets, increasing fiscal consolidation, and frequently changing demands of their clients,” she concluded.