The Economic Impact of Digital Inclusion on Young People

Digital inclusion is no longer an abstract concept, but rather a crucial driver of technological innovation. Digital inclusiveness also plays an important role in economic development and not just because young people spend more time online. Evidence shows that digital inclusion can have a positive, long-term impact on a country’s economy and workforce. Encouraging young people living in deprived areas to meaningfully engage in digital activities gives way to e-commerce growth and drives job creation, as demonstrated by the number of youth and community groups who have set up a Makerspace, digital business incubator, or Living Lab across Scotland.    

How digital inclusion influences economic growth 

The impact of digital inclusion on economic growth is particularly intriguing because, unlike many other interventions, digital targets everybody, rather than a specific subset of people.  The economic outcome of a digitally accessible Scotland is a more inclusive workforce and thus a more productive workforce.  Providing internet access is only one part of the equation and is only useful if individuals can use the internet and current technologies once online to engage in meaningful digital activities.   

Digital inclusion increases access to the internet and e-commerce 

According to a report by the World Economic Forum, in 2016, just 52% of the world’s population was online, post-pandemic this has risen by 10%.  Although internet penetration has increased, levels have remained stagnant in rural and island areas of Scotland.  Penetration rates remain a challenge across several areas of Scotland still struggling with low growth rates and lower levels of health, education, and overall well-being.  Amid a cost-of-living crisis, government-funded programs such as the Community Learning and Development Device Fund, administered through SCVO are essential to tackling low penetration rates inline with the rest of the UK and Europe.  

Digital inclusion generates offline economic activity 

To impact economic growth, digital inclusion must both increase internet access and increase the number of people who use the internet for economic activities, and this is evident by the number of enterprising young people who have set up an Etsy store, TikTok shop, or another social media point of sale interface. These online e-commerce platforms are particularly important for digital inclusion interventions targeting low-income families as offline income generation is much more difficult for low-income individuals to establish.  

Digital inclusiveness supports inclusive growth through skill development 

Skill development is a key driver of inclusive growth. For example, young people with low-literacy rates are typically excluded from some areas of education due to a lack of internet-accessible devices in schools. The lack of internet-accessible devices can create significant barriers to skill development, as internet-accessible devices are particularly useful for learning how to read and write and improving their communication and collaboration skills, thereby improving the economic opportunities available to the broader community. 

Conclusion 

With an aging population, the need for skilled workers will only increase. Digital inclusion is a crucial factor in ensuring that young people from deprived communities have access at the point of need, thereby facilitating skill development. Digital inclusion can help bridge social and economic gaps by encouraging young people with low digital literacy skills to use the internet for social and economic activities. While digital inclusion can have a positive impact on the economy, it’s important to remember that it will only be successful if implemented correctly. It is the collective responsibility of funders, policymakers, The Scottish Government, TSI’s and voluntary organizations such as SCVO to co-develop solutions with communities to ensure that digital inclusion initiatives target the right groups and provide the right services, otherwise they could do more harm than good.