The Impact of Modern Technology on Employment

Automation, digital networks, artificial intelligence, and other innovations enabled by technologies shows great promise in improving economic growth, efficiencies, and convenience—making it a remarkable breakthrough for all.

However, these technological improvements have also raised difficult questions about its broader impact on work skills, salaries, and the job industry.

Here are the possible effects of technology on employment and the industry itself.

Most Activities Workers Do Today May Be Automated

Technological developments have changed the work environment continually over the past years. However, with the speed of automation technologies today, allowing employees to automate processes such as business asset maintenance management through reliable software, the scale at which it could disrupt the job industry—is without precedent.

As machines improve and develop more advanced performance capabilities that match or surpass human capabilities, the adoption of automation will undoubtedly pick up.

Modern Technology May Help With Labor Markets

Thanks to advancements in technology, digital talent platforms can improve the ways employees and jobs are matched, promoting transparency and efficiency in labor markets alongside Gross domestic product (GDP) growth. They can increase labor participation and working hours, as evidence worldwide suggests that most individuals would prefer to work more hours if possible. Even if a tiny fraction of inactive youth and adults use these digital platforms to work a couple of hours a week, the economic impact would be massive.

With convenient and robust search capabilities and screening algorithms, digital talent platforms may also speed the hiring process and cut the time people spend searching between jobs, increasing employment. Technology can streamline the process by aggregating data on the best candidates and job openings across entire nations or regions and addressing geographic mismatches.
business owners

It Increases Potential for Digitally-Enables Independent Work

Although independent work isn’t something new, the digital application is. This change means better opportunities for freelancers and self-employed individuals. For instance, over 20% to 30% of the working-age population in the United States and Europe practices independent work. While the proportion of this approach gets conducted on digital platforms is still limited, it’s rapidly growing, driven by the scale, efficiency, and ease of use for employees and clients. These platforms include Uber and Didi.

Technology Can Create New Jobs — And Opportunities

Although technologies are bound to replace several jobs, they’re also paving the way for new work in different industries that most wouldn’t ever imagine—giving new methods to generate income. In fact, one-third of occupates made in the United States over the last two decades didn’t exist before and were prevalent in areas including It development, hardware production, mobile applications creation, and management of IT systems.

A study backs this up by revealing that the 500,000 jobs in France ‘destroyed’ by the internet in the past 15 years—created over 1.2 million other occupations. Additionally, the growing role of ‘big data’ in the economy and business will result in a massive need for statisticians and data analysts. Overall, the net impact of technology seems to be positive.

Although technology can result in some setbacks in the job industry, it’s better for everyone to ‘capture’ the productivity benefits that come with it, creating economic growth and increasing demand for work—making more room for creative solutions that will eventually benefit all.

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