Leverage Technology Investment GFC 2024

Agency and awareness Upskilling, reskilling and new-skilling activities are essential for raising the floor of the local skills base amid high labour market churn. Rather than being a one-off, upskilling should be a continuous effort, supported by a mindset of lifelong learning. Critical human-centric skills can help workers remain adaptable to the introduction of new technologies and standardized skills accreditations and taxonomies can ensure skills meet business demands. Technologies themselves can support upskilling. For example, one study by the International Finance Corporation showed that one job is created for every 30 learners trained online in Egypt, India, Mexico and Nigeria. Clear pathways to work help ensure that upskilling efforts result in labour market participation. This can be best achieved through dedicated training institutes sponsored by the public and private sectors, or through apprenticeships. Digital platforms and tools can ease the apprenticeship process through learning management systems to monitor progress and provide real-time feedback and credentialing systems to reduce administrative overhead. Work opportunity matching helps to connect workers with jobs. Job-search assistance can connect the demand for skills with the supply of talent in the labour market, particularly for web- based work, which is rapidly rising in middle-income countries. For example, X-Giants International, in collaboration with Yihaozhichang and Alipay, launched Job Machine I – a Chinese employment service that supports the swift matching of workers in rural areas to short-term employment opportunities in cities, employing facial recognition technology and bypassing the need for a resume. While this approach can decentralize economic opportunity and revitalize rural areas, measures should be put in place to mitigate privacy concerns, algorithm bias, data security and other legal and ethical issues. Business-to-business learning is a cornerstone component for business expansion, particularly for SMEs. As a lack of information can prevent SMEs from remaining competitive and succeeding, creating linkages with more established companies can support SMEs to adopt practices to satisfy the standards in line with market needs. For example, social innovator RECODE partnered with Microsoft and Accenture to develop a curriculum that equips vulnerable youths with AI skills to democratize generative AI education in Rio de Janeiro’s favelas. Access to digital and technological devices and tools is increasingly an indispensable aspect of job creation. The growing widespread availability of mobile phones has been transformative in driving change in middle-income countries. The use of mobile payment technology has been shown to support entrepreneurial growth by being safer for entrepreneurs than cash, and in particular supporting female entrepreneurship. It has also supported the growth of the platform economy in middle-income countries such as the Philippines, where estimates place the number of platform workers at 1.5 million. This can address unemployment and underemployment, drive economic activity, and support and supplement the livelihoods of those who may lack traditional job options or prefer more independent, flexible work in rapidly urbanizing middle-income economies. Resilience Formalization responds to the high instances of economic activities that are insufficiently covered by formal arrangements. It can include the promotion of formal work contracts, taxation, and regulation of working conditions and wages, including through collective bargaining. This is particularly important for women, who are less likely to work in formal employment and are often paid less than men. Formalization can provide security, protection and stability and promote inclusivity and equity for workers in the age of technology. Social dialogue can create an enabling environment for sustainable enterprises, ensuring fair wages and good working conditions. Collective bargaining – negotiations between employers and worker representatives to agree on terms of employment – can reduce inequality by raising wages and benefits more for low-wage earners than those with higher pay. Social dialogue is particularly important in the age of technology, addressing potential job losses caused by AI, ethical uses of technology and technology-driven inequality. Social safety nets enhance labour market resilience by setting minimum standards for pay and protections, including income support during times of job transitions. By protecting individuals and families during challenging times, these safety nets contribute to a more adaptable, inclusive, and stable labour market, ultimately fostering sustainable economic growth. For example, a 2022 bill in Chile incorporated platform workers into the government’s healthcare and pension scheme and introduced both minimum earnings and maximum hours requirements. Leveraging Technology Investment for Good Job Creation 7