The consequences of technological advancements for labour markets

Abstract

This chapter examines the relationship between technological advancement and inequality. It explores how emerging technologies, particularly artificial intelligence, automation, and digital platforms, are reshaping labour markets and altering the distribution of economic opportunities. The analysis begins with a historical perspective on technology and inequality, then delves into three key areas of technological change: automation and robotics, artificial intelligence and machine learning, and digital platforms and the gig economy. The chapter highlights how these technologies are disrupting traditional employment patterns, challenging the conventional low-skill/high-skill divide, and creating new demands for complementary skills. It discusses emerging job polarisation, eroding job security in previously ‘safe’ occupations, and persistent skill mismatch in a rapidly evolving economy. The chapter concludes by examining policy implications and recommendations across education and training initiatives, labour market policies, and technological governance, aiming to inform strategies for harnessing the benefits of technological progress while promoting inclusive growth and mitigating inequality.