The Future of Work
What You Should Know  6/26/19


Technological Progress has transformed living standards
Life expectancy has gone up, basic health care and education are widespread,
and most people have seen their incomes rise.
Yet, fears of robot-induced unemployment often dominate discussions
over the future of work. World Economic Forum

Robot-induced unemployment appear to be unfounded.
Instead, the future of work is driven by the competing forces
of automation and innovation, the other ‘AI.’

Technological enables growth
created 23 million European jobs from 1999-2016

as firms to automate (replacing labour with machines production) and
to innovated (expanding the number of profitable sectors, tasks, and products).

The Changing Nature of Work
focuses on the changing nature of the firm,
its impact on skills and the terms on which people work,
and how government policy should response.

Nature of work changes
have been more pronounced
in more developed labor markets where the uptake and
penetration of technology are greater. Better lifelong learning,
from early childhood development through adult learning programs,
may help some workers make required labour adjustments.

1. A Gig economy needs only a broadband connection
 to trade worldwide.
A physical presence is not needed.
Products created abroad generate domestically owned value.
Companies locate assets/profits based on tax benefits.
Foreign investments more easily compete with domestic investments.
Less domestic capital accumulates.

2. Gig technological accelerate firm growth.
Fewer employees and tangible assets are needed to generate value.
Increased employment volatility results from world-wide Gig competition.

3. Demand for middle skills drops
as technology replaces workers.
Demand for advanced skills increases as cognitive skills, socio-
behavioral skills and adaptability skills increase in importance.

4. Gig economy worker requirements remains small.
Data from Germany and the Netherlands indicate that Gig workers make up only 0.4% of the labour force.
World-wide demand is less than 3% of the global labour force.
Two-thirds of 57.3 million freelancers the US hold a traditional job

5. A Gig economy blurs the divide
between formal and informal work.
Typically low-productivity workers are employed where labour laws
are unclear on employer versus employee responsibilities.
This group of workers often lacks access to benefits so a minimum wage,
severance pay, formal wage employment contract, social insurance
and other social protections are nonexistent.

Government responsibility has changed because of

increased employment volatility cause by the Gig Economy.

see The Changing Nature of Work
5 ways Denmark is preparing for the future of work, and
The working world is changing, thanks to freelancers