Lagarde believes that digitization will not reduce jobs

21/11/2020 02:11 PM

The coronavirus pandemic has accelerated the use of digital technology when working, shopping and paying.

The President of the Central European Bank (ECB), Christine Lagarde, considers that “digitization will not reduce jobs necessarily, but rather going to transform them. “

Speaking at the 30th European Banking Congress held virtually in Frankfurt, Lagarde said that “research shows that unemployment rates are generally lower in digitized economies.”

But this generally leads to jobs being redistributed across industries, according to the ECB president.

The coronavirus pandemic has accelerated the use of digital technology when working, shopping and paying.

“Almost 50% of Europeans say they have worked from home during the pandemic and e-commerce has increased by a fifth during the first lockdown”, staying at that level when restrictions were lifted, while at the same time reduced the use of cash, according to the president of the ECB.

Lagarde cited studies that estimate that “faster automation as a result of the pandemic will destroy 85 million jobs in 26 countries by 2025, but will create 97 million new jobs, a net gain of 12 million.”

Europe faces many challenges in the coming years due to the pandemic and by long-term trends, which include increasing levels of debt, an aging population, digitization and climate change, “added Lagarde.

Therefore, according to Lagarde, sustainable growth requires progress and taking advantage of the opportunities offered by new technologies, which means that “new methods of production must be found that can create jobs, ensuring that all workers have the opportunity to acquire the skills needed to work those jobs. “

.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.