Diffusion and the employment effects of information and communication technology

Information and communication technology (ICT) has had tremendous global impact, arguably ushering in a new, post-industrial era. ICT both destroys and creates jobs, while lowering costs, countering inflation and raising competitiveness. Bringing to bear some recent data and analysis, the authors examine ICT's role in recent economic successes. Manufacturing employment in the OECD economies has grown most in high-wage, high-technology, science-based sectors which use skilled labour. Highlighting concern with the declining demand for unskilled workers, they conclude that there is a need for a major shift in education and skills provision and for new forms of employment for excluded, unskilled workers.