Digitalisation of the labour market offers many opportunities but also poses important challenges. Opportunities include increased productivity, new market opportunities, new jobs, better work-life balance and higher wages. In addition to being an opportunity for economic transition, it also represents an opportunity for industrial modernisation and job creation, including greener jobs and flexible jobs. Challenges include access to social security, association, access to labour control/inspection, health implications, etc. The negative effects of digitalisation are associated with income and job insecurity, intensification of work and deterioration of mental well-being. For example, digital labour platforms offer new sources of jobs and income, but pose challenges for the protection, representation and fair treatment of workers.
The International Labour Organisation “Digitalisation and Employment – An Analysis” brings together existing literature on the digitalisation of employment, highlights some of the major challenges and opportunities, and identifies gaps as well as potential topics for future research. This is part of the ILO’s support to its Member States to develop gender-sensitive employment policies that address the many challenges and opportunities of the ongoing digital transformation.
Indeed, governments are working to respond adequately to the rapid pace of labour market change brought about by digitalisation and automation, as public policies to protect workers are lagging behind this digital transformation. The COVID-19 pandemic has led to a reconceptualisation of the nature of work and workplace and has accelerated the transfer of government services and people’s livelihoods to virtual and digital platforms. The digitalisation of the labour market encompasses a variety of occupations, ranging from logistical on-demand services such as Deliveroo, to highly qualified software developers working remotely for individuals (or ‘influencers’) who win through data transactions generated by social media channels and webstreaming services. Digital workers are distributed around the world with asymmetric work organisation. Digital workers are generally young and male. The skills levels of digital workers are heterogeneous, albeit with greater representation among highly qualified ones.
Teleworking has become a new norm for some, and digital entrepreneurship plays a greater role in economic development and social progress, especially since the COVID-19 pandemic. In addition, e-formality has become an emerging solution for decent work and sustainable development. However, despite these efforts, inequalities between countries, sectors and workers are widening. In this context, digitalisation has brought new challenges to the labour market.
- First, employment relationships have become increasingly blurred. This has posed significant challenges to social protection, which is based on formal employment relationships.
- Second, the composition of the employees’ skills is contested. Labour markets require more advanced digital skills, but there is a shortage of workers with digital skills and a high prevalence of skills mismatches.
- Thirdly, job quality is under threat. While flexibility is widely celebrated by digital workers, it may involve more precarious and unpaid work. Moreover, social and occupational isolation and work-life imbalance represent a negative development of this new flexibility. While digital employment can increase economic inclusion, there is evidence of explicit or inexplicit forms of discrimination based on location, ethnicity, religion and gender.
Moreover, digitalisation could create an unprecedented expansion of labour surveillance, with an exponential increase in the use of smartphones and tracking technologies. Different social groups are affected differently in increasingly digital society. The results ofdigitalisation in terms of employment between men and women vary significantly. Compared to men, women face more difficulties in moving from one occupation to another and from one level of qualification to another. In general, they are less represented in sectors requiring high digital skills and disruptive technical skills. As digitalisation can offer different avenues for economic development and poverty reduction, it is hoped that increased digitalisation could increase employment opportunities for young people, refugees and marginal social groups such as ethnic minorities and people with disabilities.
Various stakeholders have
worked to ensure a fair and equal working environment in the digital age at local, national and international level. Some policies have been introduced to ensure job quality in terms of occupational safety and health standards, social security, working time regulation and access to data and privacy. Skills training programmes and initiatives have been launched to target women, young people and marginalised social groups. However, there are still many (regulatory) gaps that need to be addressed, such as cross-border teleworking, unclear employment relationships, workers’ rights and collective bargaining.
In summary, this report:
- analyse publicly available literature examining the new labour market opportunities brought about by the digital transformation;
- identify future research gaps and opportunities
- considers how some policies can be designed to compensate for the negative impact of labour market transformation on individuals and communities.