The global labor market is evolving faster than many countries can keep pace. Automation, digital platforms, and new business models are reshaping firms and redefining the skills they need. Informality remains pervasive, social protection systems often fall short of covering emerging forms of work, while education systems struggle to equip learners for a rapidly changing economy. Without decisive action, these gaps will leave millions of workers exposed and allow technological change to deepen existing inequalities.
Yet technology also opens powerful avenues for progress. Digital innovation can create entirely new sectors, spawn tasks that did not exist a decade ago, boost productivity across the economy, and help governments deliver more effective public services. Harnessed well, the twin forces of automation and innovation can generate better jobs and higher earnings.
To seize these benefits and manage the risks, countries must invest in human capital, enhance social protection, and open clear pathways to productive employment for young people. Forward-looking policies should upgrade education and training systems, adapt social assistance and insurance to new forms of work, and strengthen tax administration to curb avoidance in an increasingly digital economy. Implemented together, these measures can ensure that the future of work accelerates poverty reduction, reinforces resilience, and promotes shared prosperity.
Key Policy Messages
These are major themes and messages from the The World Development Report 2019: The Changing Nature of Work. Click on each card to see key policy recommendations.
Countries need to invest in people, early and equitably
Countries need to invest in people, early and equitably
To future-proof their workforces, countries need to build human capital by:
- Prioritizing early childhood development to strengthen cognitive, socio-emotional, and behavioral skills from the start.
- Ensuring education systems deliver actual learning, not just attendance.
- Investing in lifelong learning and reskilling programs that link adult training to employment opportunities.
Governments need to rethink social protection for a new era
Governments need to rethink social protection for a new era
Policymakers must design systems that protect workers, not just jobs. Here’s how:
- Guarantee a social minimum for all, regardless of employment type.
- Expand insurance and assistance schemes to cover informal workers.
- Use “progressive universalism” to protect the poorest first.
Countries must embrace technology, and shape its impact
Countries must embrace technology, and shape its impact
Countries must invest in innovation to benefit everyone by:
- Establishing modern regulations for digital platforms that protect privacy, safeguard competition, and ensure they pay their fair share of taxes.
- Leveraging technology to improve service delivery and broaden access.
- Equipping workers with adaptable skills that automation cannot easily replace, like teamwork, critical thinking, and problem-solving.
Governments should raise revenue creatively
Governments should raise revenue creatively
Investments in human capital and social protection need stronger fiscal foundations. Governments can:
- Tax digital platforms, carbon emissions, and urban property.
- Curb tax avoidance and reform outdated global tax rules.
- Replace distortionary subsidies with health-boosting excise taxes.
Countries should enable flexible labor markets
Countries should enable flexible labor markets
Countries should support workers and firms through transitions and economic transformation by:
- Easing restrictive regulations where they limit job mobility.
- Complementing flexibility with strong social insurance.
- Expanding public works and care services to create meaningful employment.
Policymakers should consider and design a modern social contract
Policymakers should consider and design a modern social contract
Policymakers can align today’s aspirations with fair opportunity by:
- Placing equality of opportunity, especially for youth, at the center of policy decisions.
- Investing early and consistently in expanding social protection.
- Rebuilding public trust through transparent, high quality service delivery
