Digitalisation of the economy and its impact on labour markets —
ver+2+web+version+Working+Paper+2016+02-EN+digitalisation
ver+2+web+version+Working+Paper+2016+02-EN+digitalisation
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Christophe Degryse<br />
transiti<strong>on</strong> from a society in which energy was <str<strong>on</strong>g>the</str<strong>on</strong>g> engine <str<strong>on</strong>g>of</str<strong>on</strong>g> progress,<br />
innovati<strong>on</strong> <str<strong>on</strong>g>and</str<strong>on</strong>g> productivity to <strong>on</strong>e where data <str<strong>on</strong>g>and</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> informati<strong>on</strong><br />
technologies that underpin it will be <str<strong>on</strong>g>the</str<strong>on</strong>g> engine <str<strong>on</strong>g>of</str<strong>on</strong>g> progress 2 .<br />
In <str<strong>on</strong>g>the</str<strong>on</strong>g> world <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>labour</strong>, <str<strong>on</strong>g>the</str<strong>on</strong>g>refore, it would be inappropriate to expect that it is<br />
a questi<strong>on</strong> simply <str<strong>on</strong>g>of</str<strong>on</strong>g> ‘training’ for <str<strong>on</strong>g>the</str<strong>on</strong>g> ‘new digital <str<strong>on</strong>g>ec<strong>on</strong>omy</str<strong>on</strong>g>’ or <str<strong>on</strong>g>of</str<strong>on</strong>g> investment<br />
in skills <str<strong>on</strong>g>and</str<strong>on</strong>g> qualificati<strong>on</strong>s (European Commissi<strong>on</strong> 2015: 32). Ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r <str<strong>on</strong>g>the</str<strong>on</strong>g> need<br />
will be to enter a new world <str<strong>on</strong>g>of</str<strong>on</strong>g> work in which everything will be different. ‘What<br />
Europe needs is first <str<strong>on</strong>g>and</str<strong>on</strong>g> foremost a shared European visi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> directi<strong>on</strong><br />
in which digitalisati<strong>on</strong> should evolve’ (Kowalski 2015). In <str<strong>on</strong>g>the</str<strong>on</strong>g> services sector,<br />
what will change is <str<strong>on</strong>g>the</str<strong>on</strong>g> relati<strong>on</strong>ship between <str<strong>on</strong>g>the</str<strong>on</strong>g> worker or ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r <str<strong>on</strong>g>the</str<strong>on</strong>g> provider<br />
<str<strong>on</strong>g>and</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> employer or ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r <str<strong>on</strong>g>the</str<strong>on</strong>g> algorithm that supplies <str<strong>on</strong>g>the</str<strong>on</strong>g> work, calculates <str<strong>on</strong>g>the</str<strong>on</strong>g><br />
pay <str<strong>on</strong>g>and</str<strong>on</strong>g> prepares <str<strong>on</strong>g>the</str<strong>on</strong>g> pay slip; <str<strong>on</strong>g>the</str<strong>on</strong>g> employment c<strong>on</strong>tract, wage bargaining,<br />
dismissal procedures or deactivati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> account will change also; as will<br />
social security, occupati<strong>on</strong>al health <str<strong>on</strong>g>and</str<strong>on</strong>g> safety st<str<strong>on</strong>g>and</str<strong>on</strong>g>ards, etc. In <str<strong>on</strong>g>the</str<strong>on</strong>g> industrial<br />
sector too, modes <str<strong>on</strong>g>of</str<strong>on</strong>g> producti<strong>on</strong> are changing, interacti<strong>on</strong> between <str<strong>on</strong>g>the</str<strong>on</strong>g> worker<br />
<str<strong>on</strong>g>and</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> (intelligent) machine is being altered, m<strong>on</strong>itoring <str<strong>on</strong>g>and</str<strong>on</strong>g> c<strong>on</strong>trol <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />
worker are being stepped up, managerial practices bring an increase in<br />
pressure, not to say oppressi<strong>on</strong>.<br />
1.2 Big Data<br />
In order to properly underst<str<strong>on</strong>g>and</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> magnitude <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> dynamics <str<strong>on</strong>g>and</str<strong>on</strong>g> rati<strong>on</strong>ales<br />
at work, it is necessary to refer to <str<strong>on</strong>g>the</str<strong>on</strong>g> workings <str<strong>on</strong>g>of</str<strong>on</strong>g> this <str<strong>on</strong>g>ec<strong>on</strong>omy</str<strong>on</strong>g>, for <str<strong>on</strong>g>the</str<strong>on</strong>g>y are<br />
what will indicate <str<strong>on</strong>g>the</str<strong>on</strong>g> possible degrees <str<strong>on</strong>g>of</str<strong>on</strong>g> freedom/enslavement, <str<strong>on</strong>g>of</str<strong>on</strong>g><br />
sharing/deregulati<strong>on</strong>, or <str<strong>on</strong>g>of</str<strong>on</strong>g> collaborati<strong>on</strong>/ precarisati<strong>on</strong> to be found in this<br />
digital <str<strong>on</strong>g>ec<strong>on</strong>omy</str<strong>on</strong>g>, as well as <str<strong>on</strong>g>the</str<strong>on</strong>g> foreseeable c<strong>on</strong>sequences for <strong>labour</strong> <strong>markets</strong>,<br />
<strong>labour</strong> law, collective agreements, trade uni<strong>on</strong>s, <str<strong>on</strong>g>the</str<strong>on</strong>g> balance <str<strong>on</strong>g>of</str<strong>on</strong>g> power between<br />
employers <str<strong>on</strong>g>and</str<strong>on</strong>g> employees – in short, <str<strong>on</strong>g>the</str<strong>on</strong>g> potential c<strong>on</strong>sequences for <str<strong>on</strong>g>the</str<strong>on</strong>g><br />
European social model.<br />
Big Data can be defined, schematically, as being <str<strong>on</strong>g>the</str<strong>on</strong>g> combinati<strong>on</strong> <str<strong>on</strong>g>and</str<strong>on</strong>g> sum total<br />
<str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> data (pers<strong>on</strong>al, commercial, geographical, behavioural) available <strong>on</strong><br />
digital networks – internet, mobile ph<strong>on</strong>e, satnavs, etc. – <str<strong>on</strong>g>and</str<strong>on</strong>g> exploitable as<br />
raw material, particularly in <str<strong>on</strong>g>the</str<strong>on</strong>g> framework <str<strong>on</strong>g>of</str<strong>on</strong>g> mobile applicati<strong>on</strong>s. The digital<br />
<str<strong>on</strong>g>ec<strong>on</strong>omy</str<strong>on</strong>g> <str<strong>on</strong>g>and</str<strong>on</strong>g> <str<strong>on</strong>g>its</str<strong>on</strong>g> start-ups seeking to m<strong>on</strong>etise this raw material rely <strong>on</strong> a<br />
h<str<strong>on</strong>g>and</str<strong>on</strong>g>ful <str<strong>on</strong>g>of</str<strong>on</strong>g> giant-sized platforms – including Google, Facebook, Apple, Amaz<strong>on</strong>,<br />
IBM, etc. – which ‘produce, accumulate <str<strong>on</strong>g>and</str<strong>on</strong>g> manage a huge volume <str<strong>on</strong>g>of</str<strong>on</strong>g> data <strong>on</strong><br />
<str<strong>on</strong>g>the</str<strong>on</strong>g>ir clients <str<strong>on</strong>g>and</str<strong>on</strong>g> use algorithms to c<strong>on</strong>vert this data into exploitable<br />
informati<strong>on</strong>. The growth <str<strong>on</strong>g>of</str<strong>on</strong>g> such data is exp<strong>on</strong>ential: 90% <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> data now<br />
circulating <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> internet was created less than two years ago (…). The Big<br />
Data sector has growth <str<strong>on</strong>g>of</str<strong>on</strong>g> 40% a year, seven times higher than that <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />
informati<strong>on</strong> data market’ (European Commissi<strong>on</strong> 2015).<br />
2. Though <str<strong>on</strong>g>the</str<strong>on</strong>g>re is <strong>on</strong>e dampener here: according to a GESI (Global e-sustainability Initiative)<br />
finding, <str<strong>on</strong>g>the</str<strong>on</strong>g> internet causes as much polluti<strong>on</strong> as does air traffic, in particular with regard to<br />
<str<strong>on</strong>g>the</str<strong>on</strong>g> cooling <str<strong>on</strong>g>of</str<strong>on</strong>g> servers <str<strong>on</strong>g>and</str<strong>on</strong>g> super-computers (GESI 2012). This does cast a different light <strong>on</strong><br />
<str<strong>on</strong>g>the</str<strong>on</strong>g> claim that we have moved bey<strong>on</strong>d <str<strong>on</strong>g>the</str<strong>on</strong>g> industrial period when energy served as <str<strong>on</strong>g>the</str<strong>on</strong>g><br />
engine <str<strong>on</strong>g>of</str<strong>on</strong>g> growth.<br />
10 WP 2016.02