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Many routine and manual tasks have been automated, replacing workers. By contrast, new technologies complement non-routine, cognitive, and social tasks, making work in such tasks more productive. These effects have polarized labor markets: While low-skill jobs have stagnated, there are fewer and lower paid jobs for middle-skill workers, and higher pay for high-skill workers, increasing wage inequality. Advances in artificial intelligence may be accelerating computers' ability to perform cognitive tasks, heightening concerns about automation of even high-skill jobs. Key findings Pros Technology complements many tasks, increasing productivity, quality, and innovation. Big data and machine learning are increasing machines' ability to perform cognitive, physical, and even some social (language) tasks. Greater access to data, analysis tools, and telecommunications allows many workers to focus more on social interactions, collaboration, continuous improvement, and innovation. Technology makes many high-skill jobs more intrinsically motivating, enabling more tasks, skills, and decentralization. Cons Machines substitute for humans in many manual and routine jobs. The pace at which machines gain the ability to perform cognitive tasks is faster than in the past, making adaptation by workers more difficult. Labor markets have polarized and inequality has risen, with relatively less demand for mid-skill workers and increased value for high-skill workers. Technology makes many middle-skill jobs less intrinsically motivating, with fewer tasks and skills, and more centralization and monitoring. Author's main message Technology has opposing effects on jobs. It facilitates automation, creating fewer and less motivating middle-skill jobs. Conversely, it complements social and innovation tasks, creating more interesting low- and high-skill jobs. This causes labor market polarization, "hollowing out" demand for middle-skill jobs, and increasing wage inequality. Some claim that computers will soon replace many workers as artificial intelligence advances. Others are skeptical, as previous technological advances did not lead to mass unemployment. Policymakers should encourage technology that complements employees' work, and should foster education and training that help workers adapt to change. Download full article (PDF) This article first appeared on IZA World of Labor in March 2017. Reproduced with permission Tweet April 19, 2017 Print Article(s) by this author How is new technology changing job design?Machines’ ability to perform cognitive, physical, and social tasks is accelerating, dramatically changing jobs and labor markets April 19, 2017［From IZA］ Articles Column Special Series Newspapers & Magazines Fellows' Works VoxEU Column From IZA Perspectives from Around the World Other Contents RIETI Report Policy Update Keizai Sangyo Journal Communications Newsletter RSS Feed Facebook X YouTube Research Areas Research Programs (FY2024-2028) Research Programs (FY2020-2023) Research Programs (FY2016-2019) Research Programs (FY2011-2015) Policy Research Domains (FY2006-2010) Projects Survey Fellows Research/Policy Papers Discussion Papers (English) Discussion Papers (Japanese) Policy Discussion Papers (English) Policy Discussion Papers (Japanese) Technical Papers (English) Technical Papers (Japanese) Non Technical Summaries List of Articles in Journals Research Digest Discussion Papers Search Publications RIETI Books (English) RIETI Books (Japanese) History of Japan's Trade and Industry Policy Authors' Words Other Publications (English) Other Publications (Japanese) Events Symposiums Workshops BBL Seminars Archived Seminar Series Data JIP Database R-JIP Database CIP Database Industry-Specific Nominal and Real Effective Exchange Rates AMU and AMU Deviation Indicators JSTAR RIETI-TID RIETI FDI Database ICPA Project Links Articles Column Special Series Newspapers & Magazines Fellows' Works VoxEU Column From IZA Perspectives from Around the World Other Contents RIETI Report Policy Update Keizai Sangyo Journal (METI Journal) About RIETI Privacy Policy Site Policy Site Map Help Contact METI Web Site Research Institute of Economy, Trade and Industry, IAA (JCN 6010005005426)JCN: Japan Corporate Number Opinions expressed or implied on this website are solely those of the author, and do not necessarily represent the views of the Research Institute of Economy, Trade and Industry (RIETI).Titles, numbers, specific names, etc. on this website are as of the date of publication. 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