CHAPTER 5: CONCLUSION
5.4. Policy and Future Research Recommendations
The impact, scale, and scope of technological change on the labour market is multifaceted.
Furthermore, it is the function of several localised factors such as wage levels, capital investment levels, and other prevailing regulatory frameworks. Hitherto, technological change has both created and displaced a plethora of jobs, thereby presenting both opportunities and risks.
Like previous technological revolutions, there are those who stand to gain significantly more from modern (and future) technological developments than their fellow man. There are also those who stand to lose much more than their contemporaries. The introduction of a new technology thus presents great potential for the evolution of work and output; however, it remains important to first understand the implications of such technologies so as to design and implement inclusive policy responses that distribute accrued benefits appropriately and equitably.
As such, an appropriate response would be one that aims to mitigate the negative externalities and unintended consequences of newly introduced (labour replacing) technologies, e.g., rising inequality and unemployment.
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In order to implement targeted and timely policy interventions that aim to limit shock and maladjustment in the labour market, policy makers need to identify which occupational sectors are more likely to experience change as a result of newly introduced technologies, alongside the timeframe within which this change is expected to take place.
Education, upskilling and training policies would need to consider the degree of exposure different occupations and sectors experience along with whether these exposure levels are destructive or progressive.
An appropriate policy intervention would therefore identify where occupations are at risk of being replaced by technology and initiate measures to empower workers who occupy those occupations. This would ensure more favourable outcomes for employment growth and minimise skill mismatching.
However, such a response should take care not to suppress further technological innovation, which would serve as counterintuitive to any aspirations that involve economic growth.
In general, any proposed policy approach by the South African government should aim to predict and absorb the impact modern digital technologies are expected to have on the local (and international) labour market.
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