The advancement of information technology has enabled the production network of the service industry to become global in scope. Platforms such as Freelancer and Amazon allow anyone, anywhere in the world to find a virtual worker. These platforms divide traditional jobs into discrete tasks, effectively shifting the labour market away from full-time work towards part-time contract work. While automation and robotics will reduce labour shortages in manual occupations, many people could lose their jobs as a result. Indeed, a 2016 survey by Randstad suggests that 85% of those companies surveyed will move to hiring more contract, temporary, and freelance workers.

A number of labour market policies will require updating in response to these technological changes. Because social insurance programs only protect people with full-time jobs, such policy instruments should be revised in order to deal effectively with workers in non-traditional roles. Similarly, minimum wage laws, labour standards, and tax rules are also not well suited to the changing labour market. Without smart and effective policy changes, digitization will lead to less stable employment and growing income insecurity for many.