New technologies are causing a restructuring of labour markets in many countries. While much has been written on how these technologies may destroy jobs, this chapter argues that they do not threaten the end of work but they will require extensive worker transitions. While some of the new job tasks that will be created in the digital economy will require skills at an advanced level with a strong scientific base, it is a basic knowledge of these technologies that will be required practically everywhere in the labour market. The chapter discusses the way in which both companies and governments have a role to play in meeting the challenge of achieving these transitions, in face of increasing demand for 'good work'.

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16 October 2025

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Published in The London Consensus (2025), Eds. Tim Besley, Irene Bucelli and Andres Velasco, pp. 253-279, LSE Press

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Labour markets and the future of work

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This Chapter is part of the centre's Labour programme.

This publication comes under the following theme: Labour market inequalities: Causes and cures