Rebooting the Economy.
The world has been hit hard by the economic consequences of the COVID-19 pandemic. Businesses have closed, unemployment has risen, and GDP has taken a nosedive. But as we look to recover and rebuild, technology is playing a crucial role in kickstarting economic growth. From e-commerce to digital transformation, the application of technology is helping to create new opportunities, increase efficiency and drive innovation. In this article, we will explore the various ways in which technology is impacting economic recovery, and how it will shape the future of business and society.
The shift to massive online activity allowed businesses to reach a wider customer base, as online sales and e-commerce have become more prevalent. This has been especially beneficial for small businesses that may not have had the resources to establish a physical storefront.
The rise of online marketplaces has provided a new avenue for businesses to sell their products, which has helped to create new opportunities for entrepreneurs: revenues for companies selling on online marketplaces are growing at a rate of 9.4% a year, compared to just 7.4% for those which use other online sellers.
NAVIGATING DIGITAL TRANSFORMATION
The government’s funding of the expansion of fibre-optic networks, 5G networks, and other high-speed internet connections has been especially beneficial for rural areas, which have traditionally been underserved by broadband providers. Project Gigabit is aiming to provide better broadband for more than 500,000 rural homes and businesses.
On a more general note, governmental investments in technology research and development have been critical in creating new opportunities for businesses and entrepreneurs. The development of new technologies and products has helped to drive economic growth and create new jobs.
Technology has also played a role in economic recovery by providing new tools for businesses to streamline their operations and increase efficiency. Automation and artificial intelligence, for example, have allowed businesses to automate repetitive tasks and improve decision-making processes. This has helped companies to cut costs and improve productivity.
REMOTE WORK AND VIRTUAL COLLABORATION
As lockdowns and social distancing measures were implemented around the world, many businesses were forced to quickly pivot to remote work in order to keep their employees safe and maintain operations. This was only possible due to the widespread availability and
adoption of technology such as video conferencing, cloud-based communication tools, and digital collaboration platforms.
The proportion of UK workers hybrid working has risen from 13% to 24% between February and May 2022, and this trend is here to stay, as the proportion of workers planning to spend more hours working from home is drastically rising.
HUMAN COMPATIBLE?
It is important to note that technology has not been a panacea for economic recovery. There are still many challenges that businesses and individuals are facing, and the digital divide remains a significant problem. There are many individuals and communities that still do not have access to the technology they need to fully participate in the digital economy. In 2021, 36% (11.8 million) of the workforce still lacked Essential Digital Skills for Work.
Additionally, while technology has helped to create new opportunities, it has also led to the displacement of workers in certain industries. For example, automation and artificial intelligence have led to the loss of jobs in manufacturing and other industries. This highlights the importance of investing in training and retraining programs to help workers adapt to the changing job market.
A 2021 Governmental report estimates that around 7% of existing UK jobs could face a high probability of automation over the next 5 years, rising to around 18% after 10 years and just under 30% after 20 years.
