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Digitalisation of the economy and its impact on labour markets —

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<str<strong>on</strong>g>Digitalisati<strong>on</strong></str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> <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> <str<strong>on</strong>g>impact</str<strong>on</strong>g> <strong>on</strong> <strong>labour</strong> <strong>markets</strong><br />

complex than <str<strong>on</strong>g>the</str<strong>on</strong>g> over-simplified noti<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> repetitive work, or routine tasks<br />

not requiring thought. The decline in employment in <str<strong>on</strong>g>the</str<strong>on</strong>g>se repetitive tasks has<br />

been documented in <str<strong>on</strong>g>the</str<strong>on</strong>g> literature (Charles et al. 2013; Jaimovich <str<strong>on</strong>g>and</str<strong>on</strong>g> Siu<br />

2012, quoted in Frey <str<strong>on</strong>g>and</str<strong>on</strong>g> Osborne 2013), with some authors seeing this factor<br />

as a probable explanati<strong>on</strong> for ec<strong>on</strong>omic growth without employment growth<br />

(Brynjolfss<strong>on</strong> <str<strong>on</strong>g>and</str<strong>on</strong>g> McAfee 2011 <str<strong>on</strong>g>and</str<strong>on</strong>g> 2014). This background trend is likely to<br />

be accompanied by a str<strong>on</strong>g polarisati<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> <strong>labour</strong> force with, <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>on</strong>e<br />

side, highly skilled <str<strong>on</strong>g>and</str<strong>on</strong>g> highly paid workers <str<strong>on</strong>g>and</str<strong>on</strong>g>, <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r, very low-skilled<br />

manual tasks, with <str<strong>on</strong>g>the</str<strong>on</strong>g> gradual disappearance <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> routine jobs that required<br />

medium-level skills <str<strong>on</strong>g>and</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g>fered middling-level pay (i.e. <str<strong>on</strong>g>the</str<strong>on</strong>g> phenomen<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> ‘hollowing out’ <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> middle class).<br />

In future <str<strong>on</strong>g>the</str<strong>on</strong>g> algorithms <str<strong>on</strong>g>and</str<strong>on</strong>g> Big Data combined with <str<strong>on</strong>g>the</str<strong>on</strong>g> increasing skills <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

robots will, in an increasing number <str<strong>on</strong>g>of</str<strong>on</strong>g> spheres, be able to replace <str<strong>on</strong>g>the</str<strong>on</strong>g> jobs <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

workers, since <str<strong>on</strong>g>the</str<strong>on</strong>g>se machines will be capable <str<strong>on</strong>g>of</str<strong>on</strong>g> carrying out increasingly<br />

complex <str<strong>on</strong>g>and</str<strong>on</strong>g> n<strong>on</strong>-routine tasks. The c<strong>on</strong>clusi<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> Frey <str<strong>on</strong>g>and</str<strong>on</strong>g> Osborne’s study<br />

(2013) are alarming: ‘according to our estimates around 47 percent <str<strong>on</strong>g>of</str<strong>on</strong>g> total US<br />

employment is in <str<strong>on</strong>g>the</str<strong>on</strong>g> high risk category. We refer to <str<strong>on</strong>g>the</str<strong>on</strong>g>se as jobs at risk – i.e.<br />

jobs we expect could be automated relatively so<strong>on</strong>, perhaps over <str<strong>on</strong>g>the</str<strong>on</strong>g> next<br />

decade or two’. It is true, <str<strong>on</strong>g>the</str<strong>on</strong>g> authors explain, that this predicti<strong>on</strong> must be<br />

envisaged with cauti<strong>on</strong>: developments will depend, in particular, <strong>on</strong> political<br />

decisi<strong>on</strong>s. For example, will <str<strong>on</strong>g>the</str<strong>on</strong>g> circulati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> driverless lorries be allowed?<br />

And if so, subject to what new highway-code regulati<strong>on</strong>s? N<strong>on</strong>e<str<strong>on</strong>g>the</str<strong>on</strong>g>less, <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

c<strong>on</strong>cern raised by this trend is to be taken seriously.<br />

By aggregating <str<strong>on</strong>g>the</str<strong>on</strong>g> data put forward by <str<strong>on</strong>g>the</str<strong>on</strong>g>se various authors <str<strong>on</strong>g>and</str<strong>on</strong>g> anticipating<br />

somewhat <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> next chapter, <str<strong>on</strong>g>the</str<strong>on</strong>g> situati<strong>on</strong> can be summarised as in Table 1.<br />

Table 1<br />

Jobs in <str<strong>on</strong>g>the</str<strong>on</strong>g> digital <str<strong>on</strong>g>ec<strong>on</strong>omy</str<strong>on</strong>g><br />

Jobs at greatest risk <str<strong>on</strong>g>of</str<strong>on</strong>g> automati<strong>on</strong>/<br />

digitalisati<strong>on</strong><br />

Office work <str<strong>on</strong>g>and</str<strong>on</strong>g> clerical tasks<br />

Sales <str<strong>on</strong>g>and</str<strong>on</strong>g> commerce<br />

Transport, logistics<br />

Manufacturing industry<br />

C<strong>on</strong>structi<strong>on</strong><br />

Some aspects <str<strong>on</strong>g>of</str<strong>on</strong>g> financial services<br />

Some types <str<strong>on</strong>g>of</str<strong>on</strong>g> services (translati<strong>on</strong>, tax<br />

c<strong>on</strong>sultancy, etc.)<br />

Jobs at least risk <str<strong>on</strong>g>of</str<strong>on</strong>g> automati<strong>on</strong>/<br />

digitalisati<strong>on</strong><br />

Educati<strong>on</strong>, arts <str<strong>on</strong>g>and</str<strong>on</strong>g> media<br />

Legal services<br />

Management, human resources management<br />

Business<br />

Some aspects <str<strong>on</strong>g>of</str<strong>on</strong>g> financial services<br />

Health service providers<br />

Computer workers, engineers <str<strong>on</strong>g>and</str<strong>on</strong>g> scientists<br />

Some types <str<strong>on</strong>g>of</str<strong>on</strong>g> services (social work,<br />

hairdressing, beauty care, etc.)<br />

New jobs<br />

‘Top <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> scale’<br />

Data analysts, data miners, data architects<br />

S<str<strong>on</strong>g>of</str<strong>on</strong>g>tware <str<strong>on</strong>g>and</str<strong>on</strong>g> applicati<strong>on</strong> developers<br />

Specialists in networking, artificial<br />

intelligence, etc.<br />

Designers <str<strong>on</strong>g>and</str<strong>on</strong>g> producers <str<strong>on</strong>g>of</str<strong>on</strong>g> new intelligent<br />

machines, robots <str<strong>on</strong>g>and</str<strong>on</strong>g> 3D printers<br />

Digital marketing <str<strong>on</strong>g>and</str<strong>on</strong>g> e-commerce specialists<br />

‘Bottom <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> scale’<br />

Digital ‘galley slaves’ (data entry or filter<br />

workers) <str<strong>on</strong>g>and</str<strong>on</strong>g> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r ‘mechanical Turks’ working<br />

<strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> digital platforms (see below)<br />

Uber drivers, casual odd-jobbing (repairs,<br />

home improvement, pet care, etc.) in <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

‘collaborative’ <str<strong>on</strong>g>ec<strong>on</strong>omy</str<strong>on</strong>g><br />

Source: Christophe Degryse (ETUI 2016) <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> basis <str<strong>on</strong>g>of</str<strong>on</strong>g> data from Frey & Osborne, Ford, Valsamis, Irani, Head, Babinet<br />

WP 2016.02<br />

23

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