اقتصاد الأعمال الحره: استغلال أم تمكين؟
By Aya Jaafar, Labour Economist, ILO- Regional office for Arab states
Digital transformation is rapidly reshaping the world of work, driven by advancements in technologies such as artificial intelligence (AI), blockchain, big data and the Internet of Things (IoT). From the emergence of new jobs to the displacement of traditional ones, the ripple effects of digital transformation are being felt across nearly every facet of the job market, with significant repercussions on skills needs and the overall quality of work.
Outlook for employment in the digital economy
While a universal definition of digital employment is lacking, it can be broadly understood as all employment that uses or is enabled by information and communication technologies (ICTs), spanning jobs within the ICT sector and beyond. This broad scope makes the measurement of digital employment a complex task, with different methods potentially used depending on national contexts and data availability.
One practical, albeit simplified, proxy for measuring digital employment is the total number of jobs in high digital intensity (HDI) sectors. This approach is based on the OECD's index of digital intensity, which classifies sectors as low (LDI), medium (MDI), or high digital intensity (HDI). In 2020, data from 28 countries indicated that 16.3 per cent of total employment was in high digital intensity (HDI) sectors, with a higher proportion in high-income countries (22.5 per cent) compared to low- and middle-income countries (11.2 per cent). These figures have been steadily rising and are likely even higher today, yet with continued disparity between high-income and low- and middle- income countries, primarily due to differing levels of investments in ICT and innovation. Notably, evidence suggests that HDI sectors are generally associated with higher productivity and wages compared to MDI and LDI sectors.
Today, the digital economy presents exciting opportunities, with potential for creating more and better jobs, but it also poses challenges, especially for workers in jobs exposed to the risk of automation. Nevertheless, the evidence is clear: investing in technology yields substantial returns and a net positive impact on employment, provided that appropriate policies and foundations are in place. Globally, efforts to achieve universal broadband coverage (that is, 90 per cent and above) are projected to lead to a net increase in employment of 24 million new jobs by 2030 compared to a "business-as-usual" scenario. Of these, 6.4 million jobs will be filled by young people aged 15 to 29. While the extent of benefits may differ by region, as illustrated in Table 1, these projections underscore the power of expanding digital infrastructure to unlock employment potential for both youth and adults across the globe.
Table 1: Employment effects of achieving universal broadband coverage by 2030, world and by region, (thousands)Source: ILO, Global Employment Trends for Youth 2022.
New forms of work
The size and structure of the digital economy vary widely across countries, shaped by differences in resources and national circumstances. Some countries, with their abundant resources and significant investments, have rapidly developed their digital economies, creating high-tech jobs and innovation ecosystems. In contrast, other less affluent countries face financial and socio-political constraints that have hindered progress.
Yet, despite these differences, most countries have experienced a notable rise in platform-based work, which has become a vital source of job creation, particularly where traditional employment opportunities are scarce. Both location-based and online platforms have proliferated across a wide range of sectors and subsectors, with the total number of platforms estimated to have reached 1,070 in 2023.
Beyond platform work, teleworking has become increasingly prevalent, especially since the COVID-19 pandemic. This trend has allowed employees to work remotely, whether from home, across borders or from any location with an internet connection, offering them greater flexibility and autonomy over their work-life balance. This new work modality has also enabled companies to tap into a global talent pool, potentially enhancing innovation and driving overall productivity.
Automation or augmentation? The case of GenAI
While digitalization has already brought widespread changes across most key sectors and occupations, generative AI (GenAI) marks a significant new wave of innovation, and is set to further accelerate labour market transformations, by potentially automating not only routine tasks but also cognitive and creative functions traditionally performed by humans.
However, recent research by the International Labour Organization (ILO) indicates that GenAI's ability to enhance jobs far exceeds its potential for automation. While some tasks, particularly those performed by clerical support workers, are highly exposed to GenAI, as shown in Figure 3, tasks across other occupational groups experience much lower levels of exposure. In fact, only 1 to 4 per cent of tasks are considered highly exposed, while tasks with medium exposure do not exceed 25 per cent.
Figure 3: Tasks with medium and high-level exposure to generative AI technology by major occupational group (%)
Source: Gmyrek et al., 2023
Overall, the study found that only 2.3 per cent of jobs globally are exposed to automation due to GenAI, compared to 13 per cent of jobs with augmentation potential. Notably, the Arab States region has the highest potential share of employment that could be “augmented”, whereas Europe and Central Asia has the highest share of employment at risk of automation (Figure 4).
Source: Gmyrek et al., 2023
Quality of digital work
Beyond its impact on the quantity of jobs, technology has also implications for employment quality. The digital economy, particularly the platform economy, offers flexibility and lower barriers to entry, especially for traditionally marginalized groups such as women, individuals with disabilities, migrant workers and refugees. However, it also raises significant concerns regarding decent work. Key challenges include job insecurity, low or irregular wages, excessive working hours, limited access to social protection and inadequate occupational safety and health.
Another pressing issue is the rise of algorithmic management, wherein workers are monitored, evaluated, and assigned tasks by algorithms instead of human supervisors. This intensifies concerns about transparency and fairness in performance evaluations, while simultaneously eroding workers' autonomy and restricting their ability to negotiate or contest unjust decisions. The absence of workers' representation in these systems further deepens power imbalances, leaving workers vulnerable to exploitation.
While many countries have implemented legal reforms aimed at protecting digital workers and regulating AI, there is an urgent need for more comprehensive and robust regulations to safeguard workers' rights, mitigate the risks associated with algorithmic management and foster fairness and inclusivity.
Skills for digital economies
While substantial global investments are being funnelled into digital technologies and infrastructure, the full potential of digital transformation will remain unrealized without a wider range of measures, including significant investments in the skills required for a digitally driven labour market.
In today's world, digital skills are more vital than ever, encompassing a broad spectrum of competencies, from basic abilities like computer usage and internet navigation to more advanced skills such as coding, data analysis and cybersecurity. However, this growing demand is met with a considerable shortage of digitally skilled workers across nearly all countries. In the EU, for instance, 62.8 per cent of enterprises seeking to recruit ICT specialists in 2021 reported challenges in filling these positions. Similarly, Gulf Cooperation Council (GCC) countries face notable gaps in digital skills within their national workforce. Although skilled foreign professionals may temporarily address these shortages, such reliance is unsustainable, particularly in nations where unemployment rates among citizens are high.
This digital skills mismatch largely stems from the rapid pace of technological innovation, which often outstrips the ability of education and training systems to adapt. Although governments are increasingly investing in upskilling and reskilling initiatives – albeit at varying levels- there remains an urgent need for further action to bridge this gap and anticipate future needs. Additionally, there is a noticeable lack of focus on essential non-technical skills, such as creativity, communication and problem-solving, which are increasingly vital in digitally driven environments. Unfortunately, many workers worldwide lack these critical soft skills, making it more difficult for organizations to adapt to the evolving digital landscape.
Towards an inclusive and equitable digital transformation
In today’s interconnected world, achieving an inclusive and equitable digital transformation that fosters decent job creation depends on robust and comprehensive policy frameworks that define clear employment objectives. Central to this transition is the imperative of establishing adequate digital infrastructure and ensuring equitable access to digital tools and services for individuals from all backgrounds and regions.
Equally important is the availability of both technical and soft skills essential for thriving in digital economies. This can be achieved by reforming education and training systems, promoting lifelong learning and developing effective reskilling and upskilling programs that can prepare workers for emerging digital jobs.
Regulatory reforms are also needed to ensure that emerging digital employment opportunities are not only accessible but also offer decent working conditions to individuals. Special attention must be given to vulnerable groups, including youth, women, informal workers and refugees, who face additional barriers to entering the digital workforce.
Inclusive and comprehensive social protection systems must be developed or enhanced to support workers during periods of digital transition, ensuring no one is left behind. Innovative approaches are key to covering workers in non-traditional forms of employment.
Importantly, building an inclusive digital economy requires a participatory approach underpinned by effective tripartite social dialogue that engages key representatives from both workers and employers, including those in the digital economy. Equally crucial is global, interregional and intra-regional cooperation to drive an inclusive digital transition and narrow the existing digital divide between countries.
Key resources
Digital Employment Diagnostic Guidelines | International Labour Organization (ilo.org)
Digitalization and Employment, A Review | International Labour Organization (ilo.org)
Realizing decent work in the platform economy | International Labour Organization (ilo.org)
مهتم بأحدث اتجاهات سوق العمل؟