Balancing technology and job creation

LAHORE: Pakistan faces the critical challenge of creating millions of jobs for its largely low-skilled labour force while ensuring competitiveness in a global market increasingly dominated by modern technology.

The adoption of modern technology poses a significant challenge as it often displaces existing jobs -- a phenomenon known as ‘creative destruction’. This process drives economic growth by disrupting existing industries, technologies and jobs, while simultaneously creating new opportunities. However, the country struggles with the disadvantage of being unable to afford the disruption of low-skill jobs, as the majority of its workforce lacks the ability to adapt to new technologies.

A phased approach is essential for Pakistan, prioritising job creation in labour-intensive industries while investing in skill development and intermediate technologies. With a long-term vision, the country can balance technological progress with job preservation, ensuring global competitiveness while addressing domestic unemployment.

Modern technologies such as AI, robotics and software systems automate repetitive and manual tasks, reducing the demand for human labour. They render outdated products and services obsolete, as seen when streaming services like Netflix disrupted video rental businesses. Furthermore, technology enables businesses to outsource jobs or reduce physical offices, leading to a decline in local employment opportunities.

On the other hand, new technologies also create jobs, albeit with a time lag. Companies like Apple and Google, along with the rise of app development, have generated millions of jobs globally. By 2015, the App Economy supported over 1.6 million jobs in the US and millions more worldwide. Today, over six million jobs globally are linked to app development, with digital advertising, cloud services, and online marketplaces gaining momentum even in Pakistan. The extent of job creation depends on how quickly economies adapt and reskill their workforce to meet the demands of new technologies.

Pakistan can transition its low-skilled labour force to medium- and high-skilled jobs through targeted training programs. Vocational Training Institutes can focus on modern skills, while Public-Private Partnerships (PPPs) with industries can offer short, focused courses in essential technological skills, such as operating modern machinery or basic coding.

Rather than leaping to advanced automation, Pakistan can adopt intermediate technologies that enhance productivity without entirely replacing labour. Hybrid solutions, such as semi-automated assembly lines, can combine human labour with affordable machinery to increase output while retaining jobs. In agriculture, tools like low-cost tractors and drip irrigation systems can improve efficiency without displacing large numbers of workers.

The government should provide small and medium enterprises (SMEs) with subsidized access to basic technology, including accounting software, supply chain management tools, and e-commerce platforms. Simultaneously, efforts should remain focused on labour-intensive industries like textiles and apparel by capitalizing on Pakistan’s strengths in these areas and encouraging investment in value-added products like ready-made garments.

Promoting housing and infrastructure projects, which are labour-intensive, can absorb large numbers of low-skilled workers. Developing food processing and packaging industries can add value to agricultural output and create jobs. Strengthening the export base in non-textile sectors such as sports goods, surgical instruments, and IT-enabled services is also crucial.

Most importantly, planners must carefully create a phased technology adoption roadmap while training workers in basic digital skills to prepare them for semi-automated workplaces.

Countries in the region offer valuable lessons. China balanced labour-intensive exports with investments in worker training and gradual automation. Vietnam focused on low-cost manufacturing while upgrading its labour force. Bangladesh invested heavily in vocational training for the garment sector and expanded into adjacent industries.

With a strategic and inclusive approach, the country can navigate the challenges of technological advancement while addressing its pressing employment needs.