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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<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