How Will We Work in the Digitised World of the Future? – "Willingness for Lifelong Learning is Key"

The digitisation of work has become one of the watchwords of the 21st century. As companies and markets keep up with rapid advances in the digital economy to stay competitive, sceptics fear that the automatization of labour will lead to massive job cuts. The ZEW labour market economist Melanie Arntz discusses what this means for workers and businesses in German and in Europe in general.

How is today’s labour market prepared for the changes that digitisation will bring?

The digital transition is already in full swing in many German companies, and has been accompanied by increased requirements for computer skills, process knowhow, communicative ability, and interdisciplinary knowledge. In the digital world of tomorrow, demand rises for labour force whose productivity is expected to climb as new digital technologies are deployed. The German job market is relatively well prepared for these changes, and many workers are already well trained. Moreover, German companies judge the training system to be sufficiently flexible in adjusting training contents to the needs of a digitised economy.

What does this mean for generations that have grown up in this environment and want to work?

First, skills that have a certain routine character that can be performed by algorithms will be less in demand in the future. By contrast, a communicative all-rounder who is able to apply his professional skills creatively to newly arising challenges is likely to do better. Second, the changes to the work environment will also bring with it changes to modes of working. Though crowdworking – labour that is offered digitally to companies around the globe – has so far remained a niche phenomenon; the modes of working are clearly changing and the ability to plan a career without any interruptions or ruptures is likely to decline. Third, the willingness for lifelong learning is key for being productive and successful in a constantly changing job market. And while the labour market of tomorrow offers more opportunities for self-fulfilment, it also has the potential to increasingly overwhelm individuals.

What can the government do to foster this process?

Government can introduce policies that prepare the German economy for the future while mitigating possible negative side-effects. On the one hand, this means investing in the digital infrastructure, in developing digital standards that foster digital interconnectivity, and in creating a clear legal framework for data protection. At the same time, government can encourage dialogue between the private sector and educational institutions in order to spur the necessary curriculum changes. In addition, the state must identify individuals who are in danger of falling behind and equip them with the skills they need to master the digital transition. This mainly concerns low-skilled workers who take part in company training programmes far less frequently than more qualified co-workers even though the former are more likely to perform tasks that can be automated.

As far as workforce training goes – what challenges does digital work pose for companies?

The problem that many companies frequently have is recognizing the chances of digitisation. Technical knowledge alone does not suffice as businesses must leave behind old ways of thinking. Once a company has successfully started the digital transition, it is important to train employees for meeting new requirements. However, digitisation is not always accompanied by greater requirements for workers. Notably, low-skilled workers sometimes find themselves faced with less demanding work. The challenge for companies lies not only in training employees but in helping them avoid the psychological stress that arises from demanding too much or demanding too little. Digitisation thus poses a multitude of challenges for companies to navigate.

For further questions please contact:

Jun.-Prof. Dr. Melanie Arntz, Tel. +49 (0)621/1235-159, E-mail arntz@zew.de