Impact of Technology on Employability and Wealth

Ankit Sanghvi -

Checkout this comprehensive analysis of various stakeholders, factors and strategic outcomes - link

If the very essence of employability is threatened then isn’t it important to talk about it?

And this time it is different. We talk about how technology shifts have been there, but this time its different. Today there are 78 million jobs that are vulnerable to be automated (IMF Report, 2021). And not enough non-routine, cognitive jobs being created (62mill) to fill this unemployment. gap(IMF Report, 2021). And lets take today’s discussion to talk about how this unfair wealth battlefield can be given its justice. It is currently important to study how this divide is “created strongly due to technology’s impact on employability”,at this point time - and prepare ourselves for an ambiguous future

1. Job Displacement due to Automation

Automation has pierced through not just manufacturing sectors, but a vast array of industries, radically transforming the employment landscape. Far from being limited to routine and repetitive tasks, modern technological tools are expanding into spaces we once believed were uniquely human: content generation, graphic design, music composition, and even video editing.

  • Data Snapshot: Forecasts warn that a staggering 800 million workers worldwide could find their roles obsolete by 2030 due to automation. Furthermore, an alarming statistic states that 60% of all occupations have at least 30% of tasks that can be automated, signifying the breadth of the potential impact.

2. The Daunting Skills Gap

The velocity at which technology is advancing presents a conundrum. On one end, there's a surge in tech-centric roles, while on the other, there's a glaring skills deficit. This gap is even more pronounced among certain demographics: the elderly, individuals in rural settings, those encumbered by responsibilities, people with disabilities, immigrants, refugees, and professionals in non-tech domains.

  • Data Snapshot: The World Bank's 2020 report on the digital economy illuminated the magnitude of this disparity, noting that a mere 1% of Africa's workforce possesses ICT skills. Moreover, Deloitte's findings underline this crisis, with 64% of employees believing their organizations are unprepared to bridge this skills chasm. Adding fuel to the fire, only 17% of institutions are confident about having a future-ready workforce.

3. Escalating Income Inequality

The technological boom has inadvertently created a rift between high-skilled tech aficionados and low-skilled workers. As the former group reaps the benefits of a tech-driven economy, the latter, especially those susceptible to automation, grapples with stagnating or diminishing wages.

  • Data Snapshot: As per the U.S. Bureau of Labor Statistics, the wage gap between those armed with a college degree and those with just a high school education has been expanding. The United Nations' ITU highlights another facet, pointing out that a lack of access to digital tools and the internet exacerbates income inequality.

4. Concentration of Wealth: The Tech Elites

It's undeniable that the tech era has given birth to a new class of ultra-wealthy individuals. This isn't just about riches but also the power and influence that come with such immense wealth, from influencing political decisions to shaping economic policies.

  • Data Snapshot: 2021 data reveals that the collective wealth of global billionaires skyrocketed to over $10 trillion. During the initial phase of the COVID-19 pandemic, the ten wealthiest individuals added a colossal $450 billion to their coffers. To put this disparity into perspective, the top 1% of the global populace controls more than 44% of the world's wealth.

5. Gig Economy: Freedom or Feudalism?

The gig economy, bolstered by technology, promises flexibility and autonomy. Yet, it's essential to ponder whether it's a genuine avenue for empowerment or merely a modern form of feudalism, where workers, despite being 'connected', remain isolated and vulnerable.

  • Data Snapshot: The gig ecosystem has witnessed explosive growth, with 36% of the U.S. workforce engaged in gig roles, cumulatively contributing to a market valued at $204 billion.

In synthesizing these insights, the digital age emerges as a paradox. While it offers unparalleled opportunities for growth and innovation, it simultaneously casts shadows of inequality and uncertainty. As we navigate this era, it's paramount that stakeholders – from governments to corporations to educators – work in tandem to ensure that the digital future is inclusive, equitable, and just.