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Third Industrial Revolution Consulting Group Source: ING Luxembourg (2015) Employment The values and operational principles of the Sharing Economy place it in a realm between the capitalist market and the nonprofit sector. As mentioned in the Industry Working Group report, in the short to mid-term – forty years – tens of thousands of semi-skilled, skilled, and professional workers will be required to build out and scale up the smart Internet of Things infrastructure of the Third Industrial Revolution in Luxembourg. This will require a significant retraining in the skillsets necessary to introduce a smart digital technological platform and accompanying business models. In the long run, the phase-in of a smart Digital Luxembourg will ultimately lead to a highly automated capitalist market economy, operated by small professional and supervisory workforces using advanced analytics, algorithms, and artificial intelligence. The maturing of this smart infrastructure will lead to a migration of employment from an increasingly automated capitalist market to the growing social economy. While fewer human beings will be required to produce goods and services in the market economy, machine surrogates will play a smaller role in the nonprofit social economy for the evident reason that 398
Third Industrial Revolution Consulting Group deep social engagement and the amassing of social capital is an inherently human enterprise. The social economy is a vast realm that includes education, charities, healthcare, child and senior care, stewardship of the environment, cultural activity and the arts, sports and entertainment, all of which require human-to-human engagement. In dollar terms, the world of nonprofits is a powerful force. Nonprofit revenues grew at a robust rate of 41 percent—after adjusting for inflation—from 2000 to 2010, more than doubling the growth of gross domestic product, which increased by 16.4 percent during the same period. In 2012, the nonprofit sector in the United States accounted for 5.5 percent of G.D.P. The nonprofit sphere is already the fastest-growing employment sector in many of the advanced industrial economies of the world. Aside from the millions of volunteers who freely give of their time, millions of others are actively employed. In the 42 countries surveyed by the Johns Hopkins University Center for Civil Society Studies, 56 million full-time workers are currently employed in the nonprofit sector. In some countries, employment in the nonprofit arena makes up more than 10 percent of the workforce. In the Netherlands, nonprofits account for 15.9 percent of paid employment. In Belgium, 13.1 percent of the workforce is in the nonprofit sector. In the United Kingdom, nonprofit employment represents 11 percent of the workforce, while in Ireland it’s 10.9 percent. In the United States, nonprofit employment accounts for 9.2 percent of the workforce, and in Canada it’s 12.3 percent. These percentages will likely rise steadily in the coming decades as employment switches from a highly automated market economy to a highly labor-intensive social economy. Students will need to be educated for the new professional skills that come with the job opportunities opening up in the social economy. Although a massive effort will be required, the human race has shown itself capable of similar efforts in the past—particularly in the rapid shift from an agricultural to an industrial way of life between 1890 and 1940. Despite the dramatic growth curve in employment in the social economy, many economists look at it askance, with the rejoinder that the nonprofit sector is not an independent economic force but rather largely dependent on government-procurement contracts and private philanthropy. One could say the same about the enormous government procurements, subsidies, and incentives meted out to the private sector. But this aside, the Johns Hopkins study of 42 countries revealed that contrary to the view of many economists, approximately 50 percent of the aggregate revenue of the nonprofit sector already comes from fees for services, while government support accounts for only 36 percent of the revenues, and private philanthropy for only 14 percent. 399
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