Digitalization and structural labour market problems

Abstract

"The future of work depends upon several factors, long-term competitiveness and the demographic developments, etc. However, one of the main drivers of technological change in the foreseeable future is digitalization and central to this development is the production and use of digital logic circuits and its derived technologies, including the computer, the smart phones and the Internet. Smart automation will perhaps not cause overall job losses but may lead to considerable shifts in the structure of employment, e.g. regarding industries, occupations, skills and tasks. Taking the case of Germany the paper indicates that in the future it will be difficult to tackle structural labour market issues such as skill shortages, the persistence of unemployment or inequality with regard to forms of employment. Due to the increasing demand for new tasks, skill gaps between job requirements and the abilities of workers can also occur to a greater extent. Prerequisites (e.g. concerning the level of qualification) to re-enter the labour market will probably be higher in the future. However, due to lack of solid evidence, policy implications can only address more general issues. The case of Germany highlights four main areas of concern that need focus: continuous skill development, intelligent employment regulations, more preventive labour market policies and a complementary role of social dialogue." (Author's abstract, IAB-Doku) ((en))

Cite article

Walwei, U. (2016): Digitalization and structural labour market problems. The case of Germany. (ILO research paper 17), Genf, 38 p.