LABOUR DIGITALIZATION IN EUROPE

Abstract

The purpose of this research is the study of the effects of digital transformation on employment and the possible correlation to the labour deficit; the labour deficit of the European countries and especially those of the European Union is studied. Secondary data regarding Information and Communications Technology (ICT) specialist sk`ills, employment rate and Digital Economy and Society Index (DESI) are collected and analysed. Data analysis reveals that on one hand labour deficit is undeniable, however, the greatest percentage regards the lack of digital competences and on the other hand, with the rapid technological advancements and the introduction of Artificial Intelligence on the production process a new environment will be formulated both in economic and social level. This study is based on secondary data of specific indexes; in future research an empirical study will be conducted in European countries to study in dept labour digitalization, especially in the post Covid-19 era which increased the digitalization in all countries. The adoption of new legislative and prescriptive frameworks is necessary to face labour deficit. Measures are necessary to be taken both in European and national level, as well as to effectively utilize programs and initiatives that will protect the already existed workforce and will set the ground for the new employees. This can be activated mainly through training, either as new education (reskilling) or as re-education (upskilling). The originality of the current research is based on the fact that it explores the impact of the ICT Skills on employment and the dependence between ICT Skills and DESI. The value is the reveal of the structural problems of labour market in Europe and the cross-country comparison on how digitalization can help to solve the labour deficit problem in the European countries.