Digital transformation is revolutionizing industrial production systems, offering unprecedented opportunities for economic growth and innovation. Within this context, Industry 5.0 builds on these advancements by emphasizing sustainability and social stability, promising to integrate human-centric principles into industrial development. Using a theoretical Knowledge Economy equilibrium model, this article examines the interplay between technology and human skills, demonstrating how technological complementarity can lead to wage inequality and market failures. The non-monotonic relationship between technology and wage distribution highlights the complexity of achieving socio-economic sustainability. These objectives are particularly difficult to achieve in Latin America where the digital and geographical divide is structurally wide. While Industry 5.0 aspires to foster social stability, our findings suggest that targeted government interventions will likely be necessary to address these challenges and promote a more equitable income distribution.