Social Agenda Issue 53 - EN

SOC I A L AG E NDA / J U LY 2 0 1 7 / 1 5 Other policy responses are also required, such as stimulating investment in productive equipment and infrastructure (e.g. artificial intelligence), to address existing divides in productivity and growth between EU countries. Life jacket Adapting social protection systems is also a must, to ensure a smoothly functioning labour market, inclusive growth and social cohesion. EU countries’ social protection systems were designed at a time when full-time and open-ended contracts were the norm, and in the context of a baby boom. It is crucial therefore that they manage to adapt to population ageing and to the increasing complexity of non-standard work. This complexity stems from the greater heterogeneity of jobs, a blurred distinction between employment and self-employment, more fragmented careers and unpredictable income streams… Social welfare can be a productive investment if it provides people with an effective life jacket, allowing them to take risks and devote time and resources to learning new skills. Social heritage Rather than predict the future, ESDE 2018 produces evidence- based scenarios on what happens, or would happen, if and when governments invest in schools, vocational training and higher education, for example. However, the review also shows that, whatever countries achieve in terms education, a great deal of the outcome depends on what the parents of each individual have achieved: the social heritage (see page 16). Therefore, just like investment in social protection adaptation, investment in education needs to be constant and inter- generational, in a life-cycle perspective. Only then will it have an impact on jobs and growth. The alternative to machines replacing people Tasks requiring human interaction and creativity, for example in the healthcare sector, tend to run a much smaller risk of being assigned to machines. While workers performing routine tasks in the manufacturing sector stand the highest risk of being replaced by self-learning and ever more intelligent machines. However, replacing workers by machines is just one way for firms to deepen capital and increase competitiveness. Another way is to equip well-educated, well-skilled workers with innovative capital. Indeed, qualifications are complementary to physical capital (machinery, buildings, computers…). In innovative industries and services, where this complementarity exists, digitalisation and capital deepening are creating new jobs. Investment in education is therefore crucial for EU countries, which need to ensure that all their citizens benefit from new technologies and new ways of working. In particular, the Member States need to reduce the number of people who are working below the level of their formal qualifications. And they may address over-qualification by preventing early school leaving, facilitating upskilling and promoting skill-intensive industries. However, the impact of a better-educated labour force on long-term growth will depend on how efficiently the new supply of better-educated workers matches labour demand. Human interaction: Tasks requiring human interaction and creativity, for example in the healthcare sector, run a much smaller risk of being assigned to machines. © Belga Image More information: http://europa.eu/!Qb38gF SOC I A L AG E NDA / NOV E MB E R 8