DIFFUSION AND THE EMPLOYMENT EFFECTS OF INFORMATION AND COMMUNICATIONTECHNOLOGY

Information and communication technology (ICT) has had tremendous glob al impact, arguably ushering in a new, post-industrial era. ICT both d estroys and creates jobs, while lowering costs, countering inflation a nd raising competitiveness. Bringing to bear some recent data and anal ysis, the authors examine ICT's role in recent economic successes. Man ufacturing employment in the OECD economies has grown most in high-wag e, high-technology, science-based sectors which use skilled labour. Hi ghlighting concern with the declining demand for unskilled workers, th ey conclude that there is a need for a major shift in education and sk ills provision and for new forms of employment for excluded, unskilled workers.