Digitalisation and the jobs of the future

Abstract

This article examines how digitalisation and demographic change are reshaping employment, occupations and skill requirements in advanced economies. It critically reviews competing claims about large-scale technological unemployment, arguing that headline estimates of job loss often exaggerate the effects of automation by focusing on occupations rather than tasks and by neglecting job creation dynamics. Drawing on evidence from OECD countries and Australia, the paper analyses long-term shifts away from manufacturing towards services, particularly health, social and care-related employment, alongside changes in occupational structure and skill demand. It highlights the growing importance of interpersonal, creative and adaptive competencies, while questioning simplistic assumptions about the dominance of STEM skills alone. The artile further explores the implications of technological change for inequality, showing how weakened labour bargaining power since the 1980s has contributed to a decoupling of productivity and wages. Finally, it addresses ethical issues arising from digitalisation, including algorithmic decision-making, the gig economy, and the governance of artificial intelligence, arguing that the social context and regulatory framework, rather than technology itself, ultimately shape labour market outcomes.