A strong policy focus on education and training pays off, particularly in the shift from low- to high-skilled labour demand due to automation in the manufacturing sector. New skills and well-educated workers are essential for optimal implementation and operation of new technologies. Thus, policymakers should prioritise and increase public investment in education infrastructure to effectively deal with the challenges of new technology implementation. As automation may have negative effects on employment in labour-intensive industries, special emphasis should be placed on retraining and redeployment measures for workers who have lost their jobs.