Changing nature of work: Course Future of Work

WBGx: WDR1901x Course -The Future of Work: Preparing for Disruption
Final Project
Topic: A proposed solution which can convey how the nature of work is changing
and what your country/sector governments can do to prepare and support their
workforces:
Response in Artifact:
Machines are coming to take our jobs, it has been a concern for hundreds of years—at
least since the industrialization of weaving in the early 18th century, which raised
productivity and also fears that thousands of workers would be thrown out. Innovation and
technological progress have caused disruption, but they have created more prosperity than
they have destroyed. Yet today, we are riding a new wave of uncertainty as the pace of
innovation continues to accelerate and technology affects every part of our lives.
We know that robots are taking over thousands of routine tasks and will eliminate many low-
skill jobs in advanced economies and developing countries. At the same time, technology is
creating opportunities, paving the way for new and altered jobs, increasing productivity, and
improving the delivery of public services. When we consider the scope of the challenge to
prepare for the future of work, it is important to understand that many children currently in
primary school will work in jobs as adults that do not even exist today.
Innovation will continue to accelerate, but developing countries like India will need to take
rapid action to ensure they can compete in the economy of the future. They will have to
invest in their people with a fierce sense of urgency in health and education, which are the
building blocks of human capital to harness the benefits of technology.
Changing nature of work- Several facts have dominated the discussion on the changing
nature of work. However, only some of them are accurate in the context of emerging
economies.
First, technology is blurring the boundaries of the firm, as evident in the rise of platform
marketplaces. Using digital technologies, entrepreneurs are creating global platform–based
businesses that differ from the traditional production process in which inputs are provided at
one end and output delivered at the other. Platform companies often generate value by
creating a network effect that connects customers, producers, and providers, while
facilitating interactions in a multisided model.
Technology is reshaping the skills needed for work. The demand for less advanced skills
that can be replaced by technology is declining. At the same time, the demand for advanced
cognitive skills, socio-behavioral skills, and skill combinations associated with greater
adaptability is rising. Already evident in developed countries, this pattern is starting to
emerge in some developing countries as well. In Bolivia, the share of employment in high-
skill occupations increased by 8 percentage points from 2000 to 2014.
The idea of robots replacing workers is striking a nerve. However, the threat to jobs from

technology is exaggerated—and history has repeat- edly taught this lesson. The data on
global industrial jobs simply do not bear out these concerns. The decline in industrial
employment in many high-income economies over the last two decades is a well-studied
trend. Portugal, Singapore, and Spain are among the countries in which the share of
industrial employment has dropped 10 percent or more since 19911
. This change reflects a
shift in employment from manufacturing to services. By contrast, the share of industrial
employment, primarily manufacturing, has remained stable in the rest of the world. In low-
income countries, the proportion of the total labor force working in industry from 1991 to
2017 was consistently around 10 percent. The situation was stable in upper-middle-income
countries as well, at around 23 percent. In some developing countries, the share of
industrial employment over- all is going up. For example, in Vietnam it rose from 9 percent
in 1991 to 25 percent in 2017. In the Lao People’s Democratic Republic, the share of
industrial employment rose from 3 percent to 10 percent over the same period. These
countries have upgraded their human capital, bringing highly skilled young workers into the
labor market, who, together with new technology, upgrade manufacturing production. As a
result, industrial employment in East Asia continues to rise, whereas in other developing
economies it is stable.
Two forces are increasing the demand for industrial products and therefore the demand for
labor in the industrial sector. On the one hand, the falling costs of connectivity are leading to
more capital-intensive exports from advanced economies and more labor-intensive exports
from emerging economies. On the other, rising incomes are increasing consumption of
existing products and the demand for new ones.
In many developing countries like India a large number of workers remain in low-productivity
jobs, often in informal sector firms whose access to technology is poor. Informality has
remained high over the last two decades despite improvements in the business regulatory
environment. Indeed, the share of informal workers is as high as 90 percent in some
emerging economies. The Indian labor market is characterized by predominance
of informal employment with more than 90 per cent of India's informal workforce working
as self-employed and casual workers2
.
Technology, in particular social media, affects the perception of rising inequality in many
countries. People have always aspired toward a higher quality of life and participation in the
economic growth they see around them. Increased exposure through social media and
other digital communications to different, often divergent lifestyles and opportunities only
heightens this feeling. Where aspirations are linked to opportunities, the conditions are ripe
for inclusive, sustainable economic growth. But if there is inequality of opportunity or a
mismatch between available jobs and skills, frustration can lead to migration or societal
fragmentation. The refugee crises in Europe, the war-pushed migrants from the Syrian Arab

1 World Development Report 2019
2
An Analysis of the Informal Labour Market in India Special Feature- Confederation of Indian Industry. Link
http://www.ies.gov.in/pdfs/CII%20EM-october-2014.pdf

Republic, and the Arab Spring are notable manifestations of this perception.
Considering that globally 2 billion people are working in the informal economy, where so
many lack any protection. Social insurance is virtually nonexistent in low-income countries,
and even in upper-middle-income countries it reaches only 28 percent of the poorest
people.
In India Governmnet of India has started Pradhanmantri Jiwan Jyoti Bima Yojna in year
2015. This scheme aims to increase the number of insurers in India which is currently very
low. It’s for an individual who is the sole earning member of the family and have dependents
under him/her. It ensures a term insurance cover of Rs 200000 to the dependants in case of
the policyholder’s death.
Country Government in India can do following actions:
1. Investing in human capital, particularly early childhood education, to develop high-order
cognitive and sociobehavioral skills in addition to foundational skills as Govt of India is
implementing Integrated child development Scheme from 1975 and also launched POSHAN
Abhiyaan to improve helath 7 nutrtional status of pregnant, lactating women and children
under to cover 1000 days window of opportunities, Govt need to continue these efforts in
sustainable way.
2. Enhancing social protection. A solid guaranteed social minimum and strengthened social
insurance, complemented by reforms in labor market rules, would achieve this goal.
3. Creating fiscal space for public financing of human capital development and social
protection. Property taxes in large cities, excise taxes on sugar or tobacco, and carbon
taxes are among the ways to increase a government’s revenue. Another is to eliminate the
tax avoidance techniques that many firms use to increase their profits. Governments can
optimize their taxation policy and improve tax administration to increase revenue with- out
resorting to tax rate increases.
4. The most significant investments that people, firms, and governments can make in the
changing nature of work are in enhancing human capital. A basic level of human capital,
such as literacy and numeracy, is needed for economic survival. Human capital is important
because there is now a higher premium on adaptability.
5. Social assistance and insurance systems should also be adapted to the changing nature
of work. When social protection is established, flexible labor regulation eases work
transitions.
Therefore by adopting above explained measures Government of India can support future
and existing workforce for changing nature of work
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Changing nature of work: Course Future of Work

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