Labour Market in the Context of Technological Transformations W e are living on the threshold of the next production revolution. Ongoing transformations in industry and production activities are unprecedented in terms of their scale and impact. Emerging technological developments are likely to bring widespread automation and irreversible shifts in the structure of jobs, raising major challenges on labour markets and for policymakers responsible for promoting the necessary skills and employment. Labor and technology have long nurtured a close and mutually beneficial relationship [Keynes, 1930]. While technological change has helped improve labour productivity and has been therefore translated at the firm-and macro-levels into economic growth and job creation, new technologies have substituted labour in many industries and occupations, displacing jobs across sectors, regions, or trades. Capitalization effects have benefited the sectors and enterprises in transition, as well as related sectors and partner firms that have captured positive spill-overs through pervasive supply chains. However, at the same time, destructive effects have disproportionately hit industries, territories, and populations that demonstrated a deficit of skills or lag behind the digital transition. Our world is going through a deep digital transformation. The Internet of Things (IoT), i.e., the connection of all kinds of devices, objects, and sensors via the Internet, is mutating into a gigantic, powerful and hyper-responsive "superorganism" that can monitor, inform, manage operations, and take action in realtime without the active involvement of individuals, furthermore generating an unprecedented volume of data [OECD, 2015a]. Combined with big data analytics and the storage capacity of cloud computing, the IoT can empower new predictive approaches to decision-making, new business models, intelligent systems, and fully autonomous machines [OECD, 2016]. Applications are spreading rapidly with tremendous repercussions to be expected across a large range of sectors. The IoT in particular enables smart manufacturing by providing data and tools for improving factory operations and better managing risk in the supply chain from product logistics to inventory management to machine maintenance. In network industries, IoTenabled smart grids allow for monitoring traffic, emergencies, infrastructure usage, cutting power outages, reducing waste, and implementing smart pricing programs.