As a result employment creation in manufacturing is likely to stagnate. Furthermore, jobs are also lost when existing distribution channels, which were a significant source of employment, are replaced by electronic distribution. In contrast, now-flourishing platform businesses, by virtue of being easily scalable, will not be hiring too many workers even if they grow rapidly in terms of sales.
Thus, the end result is a headwind in the labor market. 2.4. Globalization ICT also influences globalization, which in turn affects developments in the labor and product markets. As is widely recognized, ICT has been one of the driving forces behind globalization. It has greatly reduced the cost of communicating and coordinating across borders.