Technology, jobs, and the future of work – Several solution spaces to consider

Automation, digital platforms, and other innovations are changing the fundamental nature of work. Understanding these shifts can help policy makers, business leaders, and workers move forward. 

Policy makers will need to address issues such as benfits and variability that these digital platforms can raise.
ƒAccelerate the creation of jobs in general through stimulating investment and creation in businesses, and accelerate creation of digital jobs in particular, and digitally-enabled opportunities to earn income, including through new forms of entrepreneurship.

The disruption to the world of work that digital technologies are likely to entail could pose significant challenges to both policy makers and business leaders, as well as workers. There are several solution spaces to consider:

• Evolve education systems for a changed workplace. Policy makers working with education providers (traditional and non-traditional) could do more to improve basic STEM skills through the school systems, and put a new emphasis on creativity as well as critical and systems thinking.
• ƒA role for the private sector to drive training. Companies could face gaps in skills they need in a more technology-enabled workplace, and would benefit from playing a more active role in education and training, including providing better information about needs to learners and the education ecosystem.
• ƒCreate incentives for private-sector investment to treat human capital like other capital. Through tax benefits and other incentives, policy makers can encourage companies to invest in human capital.
• ƒPublic-private partnerships to stimulate investment in enabling infrastructure. The lack of digital infrastructure is holding back the digital benefits for some emerging economies; public-private partnerships could help address market failures.
• ƒRethink incomes. If automation (full or partial) does result in a significant reduction in employment and/ or greater pressure on wages, some ideas such as universal basic income, conditional transfers, and adapted social safety nets could be considered and tested.
• ƒRethink safety nets. As work evolves at higher rates of change between sectors, locations, activities, and skill requirements, many workers will need assistance adjusting. Many best practice approaches to safety nets are available, and should be adopted and adapted, and new approaches considered and tested.
• ƒEmbrace technology-enabled solutions for the labor market that improve matching and access and bridge the skills gaps.

Chosen excerpts by Job Market Monitor. Read the whole story at Technology, jobs, and the future of work | McKinsey & Company