Abstracts

46 Introduction The world has evolved dramatically from a largely agricultural and rural-based society in the 1700s, to an industrial manufacturing one in the nineteenth and much of the twentieth centuries, and eventually to today’s service- based/computerized society. Over time, new technologies (e.g., steam engines, electricity, and computers) have allowed workers to perform more varied, complicated, and value- added tasks. However, unlike earlier changes that both eliminated and created jobs in revolutionary ways, current developments in digitalization and artificial intelligence (AI) will have more significant implications for blue-collar and white-collar workers. Klaus Schwab (2016), founder of the World Economic Forum (WEF), claims that current breakthroughs have no historical precedent in terms of velocity, scope, and systems impact. AI’s intelligence and adaptability make it unique compared to previous technologies. Its capabilities of managing and making decisions based on massive amounts of data mean that even seemingly untouchable jobs are at risk of displacement. For example, a six-year study showed that AI is better than doctors at predicting heart attacks or deaths (European Society of Cardiology, 2019). A society with robots working side by side with humans no longer exists only in science fiction; this new paradigm is on the immediate horizon, and nations need to anticipate these developments to ensure their stability. Unfortunately, South Africa’s workforce is ill prepared for the upcoming changes. Accenture predicted around “5.7 million jobs (35% of all jobs) in South Africa will be at risk by 2025 due to digital automation” (Phillips et al., 2018, p. 3). The current outlook is not optimistic for the country, given its already high income inequality. On the Gini coefficient, a measurement of the income and wealth distribution of a country, South Africa currently is ranked the most unequal country in the SOUTH AFRICA’S LABOR FORCE AMID TECHNOLOGICAL CHANGE Ha Dao South Africa’s labor force is ill prepared for the advent of digitalization, with 35% of all jobs at risk of displacement. This article analyzes the current challenges and capacities of the South African labor force and suggests appropriate measures moving forward to mitigate the effect of technological change. Perspectives on Business and Economics, Vol. 38, 2020