Technological change has always been a major driver of change in society, business and personal life. The recent wave of technological advances in areas such as artificial intelligence, robotics, virtual reality, the Internet of Things, cloud computing, 3D printing, etc. is just one new cycle that may impact the future of work and, accordingly, the future of skills.

For many countries, the new technologies require them to change their economies, moving from a low-skill economy to a high-skill economy. While this change presents many challenges, it also offers great potential for companies to increase profits by adding new value-added services to their existing product line. To take advantage of this opportunity, a highly skilled workforce is needed that can develop and implement new digital products or services.

However, there is still a large mismatch between the human resources available and those required with the necessary digital skills. In addition, many companies are unable to define and assess what specific digital skills they are likely to need in this context and feel overwhelmed by the multitude of opportunities. One promising way to overcome this challenge is to invest in training initiatives to build the necessary skills. With the support of properly trained in-company trainers and a private sector-led skills development reform, TVET has the potential to be the critical success factor in a company's digital efforts.

There is a broad consensus that the integration of digital technologies will lead to a substitution or redefinition of many current jobs and introduce new forms of work. In this context, the path from low-tech industries to high-tech industries is complex and often selective, as almost every occupation has at least partial automation potential. 

Research in the ASEAN context has already quantified this evolution by industry in six Southeast Asian countries. Results indicate that there will be significant technology-induced job displacement, especially in low-skilled industries such as agriculture, manufacturing, and wholesale and retail trade (s. Technology and the Future of ASEAN Jobs). In these industries, automation technology will take over a large share of the tasks previously performed by humans. On the other hand, new jobs will be created where skill requirements will change and higher skilled workers will be in demand. Examples of such jobs are technically skilled machine operators, data analysts, IT developers, etc. 

To close this gap or to counteract the mismatch between "old" and "new" job profiles, retraining and continuing education initiatives are needed to transfer the displaced workforce into new occupational fields.

In the ASEAN region, a mismatch between skills supply and demand is already visible; in particular, a shortfall in vacancies requiring more and new skills. Clearly evident is the high number of workers expected to be laid off and need to be transferred to new occupations. In this regard, skills development plays an important role in successfully responding to the newly created market demand for skilled labor.

Most research assumes that digital transformation and the transformation of labor markets will increase economic polarization in most countries, leading to less inclusion and more inequality.

In this scenario, low-skilled workers are particularly at risk of being replaced by digital technologies, as they perform most of the tasks that could be automated as part of the labor market transformation. Another gender equality issue is the limited career opportunities for women in well-paid, high-status occupations. These occupations are still more likely to be held by men.

To overcome the aforementioned inequalities, not only can the public sector take preventive measures, but companies also have the opportunity to counteract this trend. By offering training for women and continuing education opportunities for the low-skilled, companies are given the opportunity to close their gaps in qualified workers.

While the impacts of climate change on agriculture, fisheries, tourism, and health are damaging, new opportunities in the green economy offer new approaches to offset losses in traditional employment sectors.

The link to TVET is obvious, as green jobs require specific skills. Significant sectors for "green" opportunities lie in sustainable agriculture, renewable energy, and the circular economy. Here, innovators who challenge the practices and status quo of large companies are especially needed to initiate meaningful change.

Companies looking to gain a foothold in this market are therefore advised to provide their employees with specific training tailored to the green economy in order to achieve sustainable success in the future.