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CIO & LEADER-November 2017 (1)

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Insight<br />

similarly be replaced by sensors monitored<br />

remotely in centres that provide<br />

surveillance for multiple sites.<br />

Thirdly, the nature of work will be<br />

affected. Digitalization may automate<br />

some tasks or activities but not others.<br />

An increasing number of tasks that<br />

are components of even highly skilled<br />

jobs risk becoming automated and/or<br />

outsourced. For ex<strong>amp</strong>le, secretarial<br />

work was first disrupted when computers<br />

reduced the need for assistants.<br />

The next disruption may be the shift<br />

to digital assistants, further reducing<br />

the need for secretarial assistance. The<br />

use of digital devices will grow in different<br />

jobs, requiring different kinds<br />

of skills. Car mechanics routinely<br />

run diagnostics on laptops, and truck<br />

drivers use GPS devices, including for<br />

route optimization, fuel efficiency and<br />

fuel prices. The next technology, which<br />

is already being rolled out, is connected<br />

devices that transmit usage and<br />

maintenance data (e.g. of car engines<br />

and tyres) directly to the factory and<br />

service facilities.<br />

Routine tasks that follow explicit and<br />

codifiable procedures, whether they<br />

are manually intensive (such as typing)<br />

or cognitive intensive (e.g. book- keeping),<br />

are more likely to be automated<br />

with software. A profound – and yet<br />

unanswered – question is what percentage<br />

of tasks in various jobs will<br />

ultimately yield to automation, and<br />

how much labour will be needed to<br />

perform the remaining tasks. Whether<br />

a job will continue to exist in a transformed<br />

form or disappear altogether,<br />

automation will change the traditional<br />

division of labour and tasks, affecting<br />

all sectors and all levels of skills.<br />

Finally, digitalization will change<br />

the conditions of work. Online platforms<br />

are matching tasks across the<br />

whole skills spectrum (from “counting<br />

clicks” to writing articles or coding). As<br />

noted in chapter III, these platforms<br />

are transforming labour markets by<br />

favouring certain types of contracts<br />

(freelance and contract work over<br />

regular employment) and enabling<br />

the entry of new competitors. As a<br />

result, workers with high levels of<br />

social protection find themselves in<br />

competition with other workers (in<br />

the domestic market or abroad) with<br />

low levels of social protection. This has<br />

implications for how benefits, health<br />

care and pensions are organized, and<br />

for the provision of training and continuing<br />

education.<br />

Digitalization is transforming jobs<br />

across all sectors and economies, and<br />

will create opportunities as well as<br />

challenges in developing countries.<br />

However, its overall effects remain<br />

uncertain, being context-specific and<br />

differing between countries and sectors.<br />

The main risk of digitalization is<br />

unlikely to be joblessness, but rather<br />

increased polarization and widening<br />

income inequality. While challenging,<br />

the impacts of digitalization on<br />

skills requirements, jobs and employment<br />

raise issues that are necessary<br />

to address. Countries that lack people<br />

with the relevant skills will be at a disadvantage.<br />

A range of policy measures<br />

on both the demand and supply side,<br />

including in the areas of education and<br />

skills development and in the labour<br />

market, may have to be considered.<br />

Measures will need to be adapted to<br />

each country, taking into account the<br />

current state and level of education,<br />

training and skills as well as the degree<br />

of digital connectivity and use. Irrespective<br />

of the situation in countries<br />

today, they should start preparing for<br />

future transformations. Activities and<br />

discussions related to the ILO’s Future<br />

of Work Centenary Initiative could<br />

support such preparations<br />

<strong>November</strong> <strong>2017</strong> | <strong>CIO</strong>&<strong>LEADER</strong><br />

21

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