The Future Work EconomyPosted: June 9, 2016
A topic I have been thinking about for a while now is what is the future of work, and of employment. There are a number of questions which come up, to which I must say I don’t have any answers.
One question I think about is the expected mismatch between the demand and availability of work in the future. Another is about the possible mismatch between skills requirement and availability.
Coming to the question of expected mismatch between work demand and availability, one dimension we need to consider, when building future scenarios is overall population. We are told repeatedly that technology is meant to make our lives easier, so we can spend more time with our loved ones. While thats a nice idea, what that means is that in the future, we are likely going to see much more work being automated at a global level, with people having to work less and less. This means lower demand for human resources, which could lead to a future this op-ed from Washington Post describes.
That said, however, there is another aspect which we need to consider. This is the fact that while a number of traditional occupations might not be around a few decades from now, there are likely going to be a number of new occupations, or even industries which could be generated over a period of time, as this piece from University of Kent tells us. While video games have been around for a while, no one could have anticipated the level of growth the gaming industry would see, for instance. New occupations and industries, of course, would require different skills, something we need to prepare our children for.
The other dimension is the mismatch between skills demand and availability. With Europe growing older, for instance, Europe will likely need to import workers, and with Africa growing younger, its quite simple to see where the additional workers required would come from.
This is an illustration of possible imbalances we could see in the future. The larger point here is this … the regions of the world which are well-off are likely to have fewer people in working age-groups in the future, while the regions which would have larger working-age populations would likely be unable to give access to the kind of education required to meet the needs of the job market.
Does this mean that it might be important for certain regions of the world to subsidise education and skill-building in other parts of the world? Should Japan, for instance, invest in education/skill-building in India? In other words, are we headed toward a far more integrated world as the viable solution to the problems of tomorrow?