A wave of new Technologies appears to be emerging that many speculate will not only boost productivity but also increase rates of Labor Market disruption. While past waves of technological innovation have had enormous positive impacts, including on per-capita GDP growth, all have had some disruptive impacts, including on incumbent firms, workers, and communities. While it is not the role of governments to protect businesses from innovative competitors, it is their role to help workers and communities make effective transitions.

This paper provides a description of the various technologies encompassing the NPR and G7 policies to spur NPR innovation. It then provides an analysis of the likely labor force impacts of the technologies, including on jobs and unemployment and on particular demographic groups and types of places. It then offers key principles to guide G7 policies, and lists specific policy ideas in four areas: spurring the development of NPR technologies, spurring their adoption, easing labor market transitions, and shaping policies related to common approaches to AI. The report closes with a brief discussion of key points G7 partners might make in common.