This House of Lords Library briefing provides an overview of globalisation, technology and demography and some of the ways in which they affect work and employment in the UK. It then summarises some relevant public policy proposals and suggests material for further reading.
Globalisation, Technology and Demographic Change and the Future of Work (177 KB , PDF)
On 12 October 2017, the House of Lords is due to debate a motion, moved by Lord Knight of Weymouth (Labour), that “this House takes note of the effect of globalisation, technology and demographic change on the future of work, and of the public policy response to those changes”. This short briefing provides an overview of globalisation, technology and demography and some of the ways in which they affect work and employment in the UK. It then summarises some relevant public policy proposals and suggests material for further reading.
Globalisation
A recent report by the Organisation for Economic Cooperation and Development (OECD) defines globalisation as “the economic integration of different countries through growing freedom of movement across national boundaries of goods, services, capital and people”. Globalisation has coincided with a decrease in extreme global poverty and a decrease in inequality between countries. However, globalisation has also coincided with an increase in inequality within countries according to some measures, and can have both positive and negative effects on the labour market in developed economies.
Technology
There are a wide variety of ways in which technological changes have affected work in the UK, and how they may do so in the future. The need for increased digital skills, the development of online ‘gig economy’ platforms and the use of artificial intelligence are some of the changes which are impacting the UK’s labour market.
Demography
In 2016 the UK’s population was 65.6 million. People aged 65 and over made up 18 percent of the population, an increase of 2.1 percent since 2006. According to the ONS, the increase in the proportion of people over the age of 65 is due to changes in mortality, fertility, health provisions and lifestyles. The Resolution Foundation has highlighted the fact that a decades-long increase in the ratio of workers to non-workers, resulting from the relative size of the generation born between 1945 and 1965, has started to be reversed as this generation enters retirement.
Globalisation, Technology and Demographic Change and the Future of Work (177 KB , PDF)
In November 2023, the Harrington review of foreign direct investment made recommendations about how the UK could attract more cross-border investment. The new Labour government has said tackling barriers to investment is a priority.
In its manifesto ahead of the 2024 general election, the Labour Party stated that if elected it would remove the current exemption from VAT and business rates for independent schools. The impact of this measure has been debated; some estimate a net benefit to the government of £1.3bn to £1.5bn, while others argue it could result in a net cost.
In recent years, many universities have faced financial challenges. This has been attributed to several factors, including the impact of inflation on the real-terms value of tuition fee income from undergraduates, a dependence on international student numbers and increases in the cost of living. These challenges have led to some universities reducing their education provision and staffing allocations.
