Digital economy

The impact of digital technologies on society and employment

At a conference jointly organized by Egmont - Royal institute for international relations and the UN Association-Belgium, ILO Deputy Director-General Gilbert Houngbo reflected on the digitalization of the economy and how we can guide this transition.

3 October 2016

Technological changes and the digital revolution in particular should not be seen in isolation from the UN’s 2030 Agenda, and sustainable development. They can help us mitigate climate change through innovative solutions and create more jobs. Smart applications in the agriculture, healthcare and transport sectors can boost economic growth, alleviate hunger and significantly reduce mortality, Mr Houngbo illustrated.

According to the Deputy Director-General, the ability of the world economy to create enough jobs will ultimately depend on the policy response brought to global challenges such as the introduction of new technologies, growing inequalities or aggregate demand shortages. But the greening of our economy could potentially create many jobs, if the right framework is in place.

Yet current technological changes challenge our traditional understanding of employment. They notably transform work patterns, destroy some jobs, create others and change the nature of the tasks performed. Job specifications are evolving rapidly. For example, the introduction of micro surgery and green solutions for housing have had a significant impact on the profession of doctors and architects. The responses to these challenges require adapting and extending academic and professional education and training to all.

Tripartism and social dialogue are key structures to respond to the challenges posed by innovations and technological changes. It is in that context that Mr Houngbo referred to the ILO centenary initiative on the Future of Work, which focuses on policies and strategies that embrace changes with a view to improve decent work opportunities.

Finally, the ILO Deputy Director-General underlined that everyone should benefit from the digital technology revolution. “Digital solutions can create economic opportunities worth 9 trillion US dollars, only if global actors, policy makers, businesses, workers’ and employers’ organizations combine their efforts, work collaboratively and duly address the gaps in expertise,” he concluded.