To solve the structural problems related to unemployment, a radical policy shift is needed. Innovation policies must focus on job-intensive sectors. Governments must curb free capital flows with more regulation and stimulate financial institutions to invest in productive sectors and employment opportunities. The current trade and investment regime must be reshaped. Tax on labour needs to be dramatically reduced in order to compensate for low wages. And a basic income should be part of a job guarantee programme.

The belief that economic growth– together with low inflation rates, technological innovations and good education–is enough to create all the jobs a country needs, is in decline. The reality now is that technology is improving so fast that better education is not an automatic guarantee for a good job.