The world is changing at lightning speed. Digitalisation, globalisation and demographic changes are having a profound impact on our lives, on our cultures, on our societies. These and other megatrends are constantly (and rapidly) transforming the way we interact with our friends and families; how and where businesses operate; what goods and services we consume; what dreams we dream. Our education and health, the distribution of income and wealth, the jobs we have and how we work are all particularly sensitive to these changes. It is a transformational era. Disruption is the new normal.

The times they are a-changin’. Labour markets are under pressure from the combined effects of several megatrends. Technological progress and greater integration of our economies along global supply chains have been a bonus for many workers equipped with high skills and in expanding occupations, but a challenge for others with low or outdated skills in declining areas of employment. Digitalised business models often employ workers as self-employed rather than as standard employees.People are living and working longer but facing more frequent job changes and the risk of skills obsolescence. Inequalities in earnings and job quality have been widening in many countries. The global financial crisis of 2008‑09 led to serious job losses, leaving deep wounds that have not fully healed even a decade after its onset. Turning to the future, the projected slowdown in the global economy over the next two years casts a shadow over short-term job prospects. Beyond that, it is clear that deep and rapid structural changes are on the horizon, bringing with them major new opportunities but also greater uncertainty among those who are not well equipped to grasp them. The pace and depth of the digital transformation is likely to be startling. Orders of industrial robots have increased threefold in just over a decade and are projected to double by 2020, while the amount of private equity invested in artificial intelligence has doubled over the past year. Connecting those at risk of being left behind with better job prospects should be the policy compass to a more inclusive, fairer and sustainable economy and society.

The world of work is changing in response to technological progress, globalisation and ageing populations. In addition, new organisational business models and evolving worker preferences are contributing to the emergence of new forms of work. Despite widespread anxiety about potential job destruction driven by technological change and globalisation, a sharp decline in overall employment seems unlikely. While certain jobs and tasks are disappearing, others are emerging and employment has been growing. As these transformations occur, a key challenge lies in managing the transition of workers in declining industries and regions towards new job opportunities. There are also concerns about job quality. While diversity in employment contracts can provide welcome flexibility for many firms and workers, important challenges remain in ensuring the quality of non-standard work. Moreover, labour market disparities could increase further unless determined policy action is taken to ensure a more equal sharing of the costs of structural adjustment in the world of work. While there are risks, there are also many opportunities – and the future of work is not set in stone. With the right policies and institutions, the future of work can be one of more and better jobs for all.

Despite the many opportunities, much anxiety surrounds the future of work. Doomsday scenarios are unlikely to materialise, but there are some real risks. Many are worried that the world of work is heading for a dystopian future of massive technological unemployment, precarious work, workers with little or no bargaining power, and important skills gaps as populations age rapidly. But the future of work will largely depend on the policy decisions countries make. With the right policies and institutions in place, the opportunities that digitalisation, globalisation and longer lives will bring can be seized, and the risks mitigated.

This chapter discusses the key megatrends that are transforming the labour market and analyses their implications for job quantity, job quality, and inclusiveness, the three key dimensions of the OECD Jobs Strategy framework. Despite growing anxiety about potential job destruction driven by technological change and globalisation, a sharp decline in overall employment seems unlikely. There are, however, increasing concerns about the quality of some new jobs. This may increase disparities among workers if large segments of the workforce are unable to benefit from the good opportunities the economy generates. The most important challenge for policy makers is to prevent such growing disparities. Failing to do so will result in a future of work with deeper social cleavages and increasing discontent, which could have negative ramifications for productivity, growth, well-being, and social cohesion.

The complex interplay of globalisation, technological and demographic changes is generating many new opportunities but also challenges for many workers across the OECD. This chapter provides new evidence on three selected topics that have featured prominently in the debate on the future of work: job stability, under-employment and changes in the share of well-paid jobs. The results point to worsening labour market outcomes for those with less than tertiary education and for the young in several countries. In fact, young workers with less than tertiary education stand out as a group that has experienced a pronounced decline in fortunes across a large number of countries. This raises a two-fold challenge. First, policies must promote better opportunities for school-leavers entering the labour market. Second, policies are needed to improve job prospects for the generation of young people who have faced a very tough labour market environment in the past decade.

This chapter discusses the role of labour market regulations to adequately protect workers in a changing world of work. A key focus of the chapter is on employment status – a critical area because it acts as a gateway to various worker rights and protections. Ensuring the correct classification of workers is therefore a key first step to ensure access to labour and social protection, collective bargaining and lifelong learning. For some workers, however, there is genuine ambiguity about employment status as they find themselves somewhere in the “grey zone” between dependent and self‑employment. While arguing that this grey zone should be kept as small as possible, the chapter examines the rationale and policy options for extending certain labour rights and protections to these workers. Finally, the chapter discusses the role of regulations in addressing abuses of monopsony power and rebalancing bargaining power between employers/clients and workers.

The purpose of this chapter is to identify the role of labour relations in shaping the future of work. The discussion starts by reviewing how social dialogue, and collective bargaining in particular, can be complementary and flexible tools along with labour market regulation to foster a more rewarding and inclusive future of work. This is followed by a discussion of what type of government intervention may be required to keep bargaining systems fit for purpose and make the most of collective bargaining in a changing world of work. Finally, the chapter reviews how existing institutions and social partners are adjusting to the new challenges in the labour market, as well as the role of emerging actors and new practices.

This chapter discusses the key role of adult learning in ensuring that all individuals can successfully navigate a changing labour market. It provides an overview of how several megatrends are changing job content and skill requirements. It identifies groups of adults that may face difficulties adapting to these changes unless they participate in re-skilling and up‑skilling programmes. It also singles out workers in non‑standard employment arrangements who face a number of challenges in obtaining training. For each group, the chapter discusses policy options to raise participation in training based on the specific barriers they face, be it the low quality of available training or a lack of motivation, time, money or employer support.

This chapter assesses challenges for social protection policies in a changing world of work and presents evidence of support gaps in public policies affecting different types of workers. Key policy challenges include a greater need for support resulting from greater employment instability or lower earnings among some groups; a reduced accessibility or adequacy of social protection measures that were designed around stable forms of dependent employment; and sustainability challenges, e.g. due to opportunities for avoiding participation in risk‑sharing provisions. Accessing adequate support can be especially difficult for workers in less secure forms of employment. But support gaps are small in some countries that adopt fairly different social protection strategies, suggesting that accessible support can be achieved with different blends of social insurance and means‑tested assistance. The chapter discusses alternative reform avenues and illustrates country approaches to prepare income support and reintegration measures for the future of work.