Digital Economy and Employment
Digitization is an unstoppable fact, like the Industrial Revolution was in its time. It is changing every aspect of everyday life. The challenge is to find ways to take advantage of the new economic model for the benefit of everyone in society.
The digital economy is based on information and communication technologies. It mainly consists of four sectors: telecommunications, information technologies, consumer electronics, and digital content. Investments in information and communication technologies have a positive impact on productivity, unemployment and GDP. Some studies show that increasing penetration of broadband Internet access can achieve up to 1.5% increase in GDP.
According to the World Economic Forum, an increase of 10% in the ‘digitalization score’ of a country can lead to growth of 0.75% GDP per capita, plus a significant fall in unemployment.
Competition within and between digital markets is ferocious. Companies are frequesntly entering and disrupting each other’s markets. Such dynamism is typical of the Internet value chain in which companies are searching for greater efficiency and market power. The type and location of employment is also changing. People and communities that are able to adapt to this new environment will enjoy the positive aspects of these big changes.