Employment Policy Brief

New automation technologies and job creation and destruction dynamics

This policy brief addresses the following question: is the labour-replacing potential of the technological revolution so far-reaching that it is inherently different from what has been experienced in the past, and on balance is an inhibitor rather than a generator of decent work?

Is the labour-replacing potential of the technological revolution so far-reaching that it is inherently different from what has been experienced in the past, and on balance is an inhibitor rather than a generator of decent work?

This policy brief addresses this question providing the following:

- a critical review of recent empirical studies on the effects of new automation technologies on jobs;

- a discussion of multiple job creation and destruction dynamics and how these can offset each other at different levels of aggregation;

- a discussion of the prospects for reshoring (a reversal of offshoring by multinational enterprises) resulting from new automation technologies;

- a closing discussion addressing the possibility of a bias of perception resulting from the anthropomorphic characteristics of many new automation technologies and – even in the absence of overall job loss – the need for progressive policies to address the probable tendency towards growing inequality and the challenge for workers of transitioning from old to new jobs.