Peter Wilson
Research and Impact Manager, Policy Connect
The impact of technological change on the labour market relies on human decisions made by policymakers, corporate leaders and everyday citizens. Ultimately, we determine the future of work.
Technological progress is not guaranteed to create unemployment. The future of the labour market is something we will all shape.
How tech has generated more jobs
Technology can replace some jobs, but historically, it has created more jobs overall than it has destroyed. First, it enhances worker productivity by complementing their skills, making it more attractive for businesses to hire workers to make profits. Second, the overall productivity boost in the economy leads to increased incomes, which drive increased spending on goods and services and, consequently, greater demand for labour. Lastly, technological advancements create new job categories, demanding a workforce to fill these emerging roles.
Shaping tech’s future impact
Going forward, we could shape the development and uptake of artificial intelligence (AI) and robotics in the economy to protect or reduce the demand for human labour. For example, governments could tax human-replacing automation and reduce taxes on human work; companies could focus on investing in technology that complements their workforce; and citizens could use their purchasing power to favour human-made goods and services — or we could do the opposite. The future of work will be fundamentally shaped by human choices.
If decision-makers get things right,
technological advancement could
bring immense benefits.
Businesses need to invest in training
If decision-makers get things right, technological advancement could bring immense benefits. Higher productivity leads to more prosperous societies, where people can work fewer hours and buy cheaper goods. Policymakers must ensure the benefits of technological advancement are widely shared.
Businesses will have a pivotal role to play. They must invest substantially in technology and promote its effective uptake within their firms. Moreover, they will need to increase the amount they invest in training staff so that they and society can maximise the benefits arising from the technological revolution.
Business investments in technology pay their highest returns only when staff know how to maximise the potential of the new tech. Innovative companies will be those that invest heavily in training and reap the benefits of improved productivity and a happier workforce that is easier to retain.
Opportunities through proactive policymaking
While challenges will arise from technological change, it also offers unprecedented opportunities for prosperity and better forms of work. The key to harnessing this potential lies in proactive and thoughtful policymaking and substantial investments in workforce development. Getting this right could build a future where AI complements our labour, fostering a vibrant economy that benefits people across our societies.
