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New digital technologies additional and a lot of diffuse into the economy. thanks to this digitization, machines become progressively able to perform tasks that previously only humans may do. Production processes and organizations square measure dynamic , new merchandise, services and business models emerge. These trends have necessary implications for European labour markets. This operating paper presents up-to date proof on the implications of technological innovations on labour markets supported the tutorial literature and discusses the ensuing policy challenges beside samples of policy responses. One key finding is that to this point recent technological amendment has had very little result on the mixture variety of jobs however ends up in important restructuring of jobs. This means 3 key challenges for labour markets:
- Digitization induces shifts in ability needs, and workers’ fate in dynamic labour markets crucially depends on their ability to stay up with the amendment.
- Secondly, digitization isn't a strictly technological method, however needs associate degree incidental to method of organisational amendment.
- Thirdly, digitization comes beside rising shares of other work arrangements, thanks to a lot of outsourcing, standardisation, fragmentation, and on-line platforms.
These different work arrangements imply each new opportunities and challenges. These challenges need adequate policy responses at the ecu, national and regional level, that the operating paper outlines for education and coaching policies, active labour market policies, financial gain policies, tax systems and technology policies.
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