Digitalisation: Much ado about nothing or is there more to come?

A new study by KfW Research has fact-checked popular myths about the labour market impacts of digitalisation. Key findings: The negative impacts are often exaggerated in public debate, which instils unnecessary fear. Jobs will be lost but this will likely affect only a fraction of the labour force. Structural change has slowed down in past decades, creating high job security. Incomes from work are unlikely to decline as a result of automation in the near future. Given the current demographic trends, however, the weak labour productivity rate is a cause of concern. Digitalisation and automation offer an opportunity to overcome productivity weakness. That would require increasing the low investment and innovation rates, along with a digital education initiative that also reduces the high share of low-skilled workers.

Digitalisation: Much ado about nothing or is there more to come?(PDF, 373 KB, non-accessible)