Digitalisation, Greening and the Labour Market

Abstract

This chapter explores the dual impact of digitalisation and the green transition on the labour market, highlighting how these transformations reshape work structures, employment relations, and skill demands. It first examines digitalisation through the lenses of automation, robotisation, and digital labour platforms. While these developments boost productivity, they also pose risks such as job displacement and labour market polarisation, especially for low- and medium-skilled workers. Additionally, new forms of platform-based, non-standard work challenge traditional legal definitions and weaken social protections. The green transition is discussed as a major industrial shift influenced by EU policies, particularly the European Green Deal. The chapter outlines how innovation, energy efficiency, and sustainable production alter employment patterns. It identifies key mechanisms of change—such as resource efficiency and process innovation—and evaluates their implications for job creation and transformation. By integrating technological and environmental perspectives, the chapter proposes a framework to assess how these twin transitions interact and shape labour dynamics. It also points to policy measures that can mitigate associated risks and support inclusive, sustainable employment growth.