It is sometimes asserted that an era of faster economic growth has come about --the so-called New Economy. New technology, notably information and communications technology (ICT), is seen as a key factor at work, together with international economic integration. This report examines the issue from a labour market perspective. The findings suggest that sanguine predictions about the New Economy are unlikely to materialise unless the appropriate policy environment is in place, notably as regards employment and human capital development policies.

New technology holds the promise of higher economic growth, ...

True, new technologies hold the promise of higher economic growth and improved living standards. Besides the potential impact of technology on efficiency gains, ICT may provide opportunities for better utilising existing skills. In this regard, the availability of telework to groups so far underrepresented in the labour market is a positive phenomenon. Also, new technology will ...