As newer technologies like robotics and artificial intelligence (AI) take over, workers need to upskill or face the risk of lower wages and unemployment, ADB warned today.
ADB's 'Asian Development Outlook, 2018' has called for government action on skill development coupled with steps in labour regulation, social protection and income redistribution.
It said jobs which require repetitive, routine tasks and workers who do not have the education or training to move easily to other occupation, may face slow growth in wages.
"New technologies alter the skills required of the workforce and may cause unemployment as some firms downsize or close. They make the less-skilled more likely to experience lower wage growth, exacerbating income inequality," it said.
Asian Development Bank (ADB) President Takehiko Nakao said the application of new technologies will boost productivity but displace certain jobs.
He added however that rising demand and higher output will create jobs, thereby outweighing job displacement, as new occupations and industries would be added due to use of technology.
"This transition will require a skilled workforce and could put the less-skilled at a disadvantage. The challenge for governments is to ensure that workers are equipped with foundational skills to enable lifelong learning and have the specialised skills required for working with new technologies...
"They must ensure that new technologies develop in ways that benefit people and protect their rights," Nakao said.
The report further said that governments should use new technologies in education and skills development, as well as to deliver such public services as social protection programmes. "Government support for new technologies must benefit people and protect their rights and privacy."
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