New Technologies Boost Employment in East Asia and the Pacific, but Benefits are Uneven
A report published by the World Bank on May 19, 2025, reveals that new technologies have stimulated employment in East Asia and the Pacific, with productivity gains and economies of scale offsetting the effects of automation on the workforce.
However, the benefits have been uneven, favoring skilled workers while pushing less skilled workers, who occupy more routine and manual jobs, towards the informal sector.
Looking Ahead: Digitalization and Artificial Intelligence to Transform Production Processes
In the future, digitalization will improve the negotiability of services, and artificial intelligence (AI) will transform production processes. East Asia and Pacific countries can capitalize on this by equipping their workers with the necessary skills and opening up service sectors to trade and investment.
The Impact of New Technologies on Labor Markets and the Nature of Work
New technologies are affecting labor markets and the nature of work by replacing, augmenting, or creating new tasks performed by workers.
Robotization and Job Displacement
Robots are replacing industrial workers in routine manual tasks, such as assembly line operators.
The Threat of Artificial Intelligence to Service Workers
AI is threatening to supplant service workers not only in routine tasks (e.g., risk assessors) but also, increasingly, in non-routine cognitive tasks (e.g., interpreters). AI-equipped robots could also have an impact on workers in non-routine manual professions.
