Digitalization is changing the world of work. That much is certain. But how worried should we be about it? A recent study by KfW Research explores this question. The conclusion: The future of work isn't so bleak.
In the public debate about the labor market impacts of digitalization, theses have gained prominence that worry many people: artificial intelligence and automation threaten virtually every job. Together with globalization, digitalization is accelerating structural change exponentially. This is increasingly overwhelming both employees and companies. There are also fears that labor incomes will dwindle and the funding base for social security systems will collapse.
More opportunities than risks
It is high time to subject these theses to a fact check. The conclusion of a recent study by KfW Many critics of digitalization are likely to dislike this research. The study concludes that digitalization offers far more opportunities than risks in the labor market. Above all, it can help eliminate the skills shortage in many sectors, which is expected in Germany by the end of the next decade due to an aging population without countermeasures.
However, the study also highlights that certain public measures must be taken to ensure a successful digital path in the labor market. These include, among other things, startup support and the provision of the necessary digital infrastructure. Digital education should also be integrated into school and university curricula. Therefore, it's important not to be afraid of digitalization, but rather to set the right course now.
