Digital technologies affect employmentthrough complex channels: automation, connectivity, andinnovation. Labor-saving technologies coupled with reshoringmay disrupt labor markets in developing countries and resultin job losses. Yet, technological change drives productivitygains in both white-collar and blue-collar jobs eitherthrough ICT uptake or modern mechanical technologies. The‘gig economy’ changes the traditional employer-employeerelationship as it introduces new types of work. Digitalplatforms increase flexibility and labor markettransparency, but delink workers from employers and fromsocial benefits and protections making them more vulnerable.Policymakers in rich and poor countries alike should rethinksocial protection mechanisms. Technology diffusion hascreated divided worlds varying by region and income level.Job automation is likely to have a greater impact on lessskilled workers than those with a university education (40percent versus 5 percent in OECD countries). Moving towardsa digital economy will reward those with access to broadbandconnectivity, strong institutions, and digital literacy.Future workers must acquire basic IT skills together withsocio emotional skills that adapt to a lifelong learningenvironment in a changing jobs landscape. Technology canalso increase labor market access for women and persons withdisabilities, given the right ‘analog’ complements are inplace. Technological change will affect the number, quality,and distribution of jobs across the world. In developingcountries, the future workforce should be ready to embracetechnology, digital literacy, and connectedness—bringingeveryone closer to the technological frontier.
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