The impact of technology on the labor market: towards more precarious jobs and increased polarization

The labor market is changing, influenced by the growth of technologies and the rise of digital platforms. This phenomenon, although bringing opportunities, also raises concerns because it contributes to the precariousness of jobs and leads to a increased polarization. While positions requiring advanced skills are increasing, those at intermediate and routine levels are in sharp decline. Let’s analyze how these developments are reshaping the economic landscape and impacting workers.

Technology and labor market transformation

THE technological changes are disrupting the structure of the labor market by profoundly modifying the tasks that companies carry out. Manual, repetitive and low-skilled positions, often routine, are the most vulnerable to automation. For example, vending machines and digital portals are replacing many middle-job jobs, highlighting the growing need for engineering and management skills.

Towards a polarized labor market

This transformation leads to a job polarization, a phenomenon which results in the increase in high-skilled and low-skilled jobs. Researchers David Autor and David Dorn observed this trend in the United States, and subsequent studies demonstrated its presence in Europe, particularly France.

The decline of intermediate jobs

Middle jobs, often based on routine tasks, have seen a significant decline in recent decades. This erosion contributes to increasing wage inequalities and reduces opportunities for those who occupy these precarious positions.

The rise of precarious jobs

In France, the labor market reflects a dualism marked by the domination of precarious contracts such as fixed-term contracts and part-time work. This development reflects a trend where most new job creation is in these forms, often replacing stable positions.

The impact of recessions on employment

Economic transitions, notably recessions, act as catalysts for employment transformations. Periods of recession frequently result in a reduction in standard, routine jobs. As these precarious jobs increase during these periods, affected workers suffer losses in hours worked and stable jobs.

Consequences for workers

Ideally, workers should be able to move from routine jobs to ones requiring more advanced skills. Unfortunately, in France, this mobility remains limited. Workers often re-enter the labor market in precarious forms, thus reducing their future prospects and their sense of security.

Promote better adaptability

To mitigate this impact, it is imperative to reform the institutions that govern the labor market and facilitate the transition to new, more sought-after skills. A review of the training system could make it easier for workers to embrace change and seize retraining opportunities throughout their professional lives.