Transformation of Labor Markets

Labor markets in the rich world are experiencing significant shifts and changes. Three major factors contribute to this transformation: demographics, policy changes, and technology. The aging of society leads to scarcer and better-rewarded labor, especially in manual work. Political policies now support workers more, creating higher demand for labor. Additionally, technological advancements, such as artificial intelligence, boost worker productivity and create new job opportunities. These trends reinforce each other and have the potential to reshape the labor market.