Whether we like it or not, technological change is transforming the job market and our work. Some of this change is positive. Technology can increase productivity and create new jobs. It can also reshape the mix of tasks that we do, and it may even replace some jobs altogether.
For example, in recent years, technology has largely been used to automate routine manual and cognitive tasks. This has polarized labor markets, with middle-skill jobs stagnating and high-skill tasks becoming more productive, resulting in increasing income inequality. But technological change can also enhance the productivity of workers in many different ways, including enabling them to perform more complex and creative tasks that would be impossible for machines to do.
Technology can also make jobs more meaningful and rewarding. For example, many people are embracing independent work accessed through online platforms that offer flexibility and choice in how they generate income. Some of these platforms connect businesses with workers, and others allow individuals to find and bid for jobs. These platforms can make it easier for displaced workers to find new jobs and become more productive in their existing jobs.
Another way that digital technology is changing the job market is by allowing more people to start their own businesses. This trend is driven by greater access to cloud computing and telecommunications. It’s also fueled by the availability of new software for business processes, such as accounting, marketing, and sales. These tools can help small and medium-sized businesses compete with larger enterprises by delivering better services at lower cost.
In addition to empowering entrepreneurs, digital technology can help reshape the workplace and improve worker welfare. For example, new technology enables employers to more easily assess the skills of job applicants. This can reduce the need for interviewing and selection, making it easier to identify the most qualified candidates. This can help companies avoid hiring the wrong person and reduce employee turnover. It can also improve transparency and reduce costs by eliminating misunderstandings and avoiding miscommunications.
The last area where digital technology is reshaping the job market is by making human jobs more satisfying. It is helping to eliminate boring, repetitive manual tasks and allowing employees to focus on higher-order thinking and other value-adding activities. It is also making jobs more socially beneficial and providing new ways for workers to generate income.
One example is the use of big data and machine learning to make machines better at performing cognitive, physical, and even some social (language) tasks. These advances can improve prediction and problem solving, as well as provide increased physical dexterity and sensory perception in robots. The development of smarter devices will also help make machines more useful, with applications such as autonomous cars and medical diagnostics. Moreover, the avalanche of new productivity apps and software makes it easier for workers to manage projects and collaborate across departments and locations. This can lead to more streamlined business practices, continuous improvement, and innovation.
