The Labor Market in Relation to Digitalization—Perspectives on the European Union

Abstract

Both digitalization and the labor market are intensely discussed subjects in the current context of global society and economy, characterized by intense competitiveness. In these circumstances, the efforts undertaken by the EU Member States are focused on increasing the degree of digitalization and maintaining a low level of unemployment. Providing an overview on the two dimensions mentioned, while considering the results registered for the EU Member States, the purpose of this paper consists in identifying the possible correlations between the DESI Index and three specific labor market indicators, namely: Employment/Population Ratio, Labor Force Participation Rate, and Unemployment Rate. The obtained results highlight a strong positive correlation between digitalization of the EU Member States and their Employment/Population Ratio, as well as on their Labor Force Participation Rate. Moreover, based on the linear regression model, we expect increases of 3.4% and 3.02%, respectively, for the two indicators, in the context in which the DESI Index registers an increase of one unit.