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Increased digitalization and automation are expected to significantly affect both the quality and quantity of jobs. New types of jobs and employment are changing the nature and conditions of work by altering skills requirements and replacing traditional patterns of work and sources of income. They open opportunities, especially for developing countries, to enter new, fast-growing sectors and catch up with more advanced economies. At the same time, new technologies are affecting the functioning of labour markets and challenging the effectiveness of existing labour market institutions, with far-reaching consequences for the number of jobs, their quality and the diversity of opportunities they offer. This Issue Brief discusses the potential of technological change for job creation and destruction and its implications for inequality and job polarization. It also highlights the opportunities for economic development and labour market efficiency and inclusion.