The future of work in Europe

This World Bank – FEPS lunch roundtable focused on how digitalisation is fuelling inequality and what we can do about it. 

Technology is a potent driver of productivity and economic growth and is also reshaping Europe’s labor landscape. During this meeting, we launched a new World Bank report, ‘The future of work: Implications for equity and growth in Europe‘, which delves into the transformation that technology is causing within European firms, changing their tasks and the skills they require, and widening the gap between highly educated and less-educated workers.

Among the key findings of the report:

• Large and more productive firms adopt more technology, increasing their market size and productivity. This creates a positive link between technology and market concentration. 
• Technology enhances productivity and increases the demand for university graduates, intensifying wage gaps between highly educated and other workers.
• Vocational education and training (VET) graduates are more likely to find employment than their peers with a general secondary education degree. However, this advantage fades away within five to seven years of entering the workforce.

How can governments promote technological benefits without amplifying societal divides? This event explored solutions and recommendations for policymakers. We discussed the option to craft a future where technology’s rewards are inclusive, benefiting every level of European society.