Debates about the potential negative effect of technology on jobs have been a staple of political and popular discussions since at least the Industrial Revolution.

As technological innovation continues to reshape the global economy in unprecedented ways, fears about the adverse consequences of this on human livelihoods once again abound. But just as the fearmongers were wrong in the 19th century, it is likely that their modern-day counterparts fundamentally misunderstand the opportunities being opened up by technology today.

As the disruptions related to COVID-19 have shown, digital technology is a powerful force for continuity and reach in business and in labor markets alike. It is likely its true potential has barely begun to be unleashed.

Digital technology can help create better labor markets at multiple levels. It can play a powerful role in driving transparency and efficiency in what have always been very inefficient, imperfect markets.

The challenges involved in objectively measuring skills and competencies, gaining access to all relevant options and making the most of human capital have made it difficult to counter phenomena such as “wasta,” an Arabic term used to describe the situation when people use their connections with officials or other powerful individuals for personal gain. Other words for it include influence-peddling, cronyism or nepotism.

Technology can make it much easier to standardize and centralize information, as platforms such as LinkedIn have demonstrated. It is possible, therefore, to begin to imagine a scenario where digital connectivity between employers, employees, education providers and others, along with standardized protocols, will provide a more efficient alternative to the fragmented market of today that is driven by individual job applications.

Digitalization is also challenging the rigidity of traditional labor markets by making it much easier for people to gain access to economic opportunities. Rapidly growing population of “digital nomads” now work with customers around the world. Many online platforms now offer accessible opportunities for earning money, for instance in the creative industries.

In general, digitalization has become the new norm for connecting with customers and partners. Importantly, it offers a way of doing so in a way that no longer is geographically confined. Traditional brick-and-mortar business can now think beyond their “old” markets.

Technology is also redefining the workplace, a process that has been greatly accelerated by the pandemic. The prospect of an economic order in which jobs are no longer exclusively linked to a given physical location during predetermined hours has potentially profound implications for the nature and organization of work. It can reduce the space requirements for workplaces, as well as reducing the cost and stress of commuting.

It is too early to tell how far this process will run, but the idea of hybrid work is gaining currency and the option of distance working will likely mature over time. A more flexible workplace can be a powerful tool for inclusion, especially for people unwilling or unable to work in traditional full-time employment.

In the Gulf the potential is particularly compelling for women, who no longer need to face a binary choice between their careers and family responsibilities. The option of working part time, more flexibly or remotely will translate into new opportunities for economic participation and career development.

The seemingly irreversible rise of the digital economy will itself create a growing demand for new kinds of skills and facilitate a transition to an increasingly knowledge-based economy.

Opportunities will exist at all levels, from infrastructure-systems development to content creation and solutions design. Since digital solutions are almost always easily scalable and adaptable, even standard services can be sold in a bespoke, on-demand manner, offering inbuilt flexibility and value for money. Moreover, since the digital economy will come with its own set of vulnerabilities, there will be a need for cybersecurity experts of all kinds.

Given all this potential, are the naysayers completely wrong? What most people are reacting to is the endemic uncertainty of the new economic order. Technology is reshaping work and reordering all sectors of the economy at an accelerating place. Change will inevitably result in disruptions as business models are overhauled and behavior continues to change.

But ultimately, the integration of technology in almost everything we do will be a major source of productivity. And productivity, in turn, is the main driver of living standards. The creation of more wealth offers the solution to many of the disruptions. It will create new jobs and business opportunities.

But digitalization can also be harnessed to retrain and reskill people in disrupted industries for the emerging new opportunities.

• Jarmo Kotilaine is an economist and strategist focusing on the Gulf region. He writes on issues ranging from economic development to changes within the corporate sector.