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The digital transition has important implications for the European employment conditions; the latter is closely connected to competitiveness: i.e. the use of advanced digital technologies and AI models in public/private sectors is seriously affecting the optimal levels of labour productivity. The digitalisation process that has taken place in the EU since 2008, has had significant links with the income convergence process and revised political-economy’s priorities across the EU-27 member states.
Background
According to latest global researches’ findings, employment has been polarized over recent decades: thus, e.g. the employment growth is, generally, focusing on the top and bottom of the wage ladder at the expense of mid-paying jobs.
However, empirical findings in the EU member states, actually challenging this trend: thus, a report summarizing main aspects in the “European Jobs Monitor*)” since 1995, examines the role played by the expansion of third-level education in the increase in higher-paying jobs. The analysis also considers the effect of crisis and recession, detailing the changes in employment arising as a consequence of the 2008–2012 economic crisis and the COVID-19 pandemic.
Thus, e.g. the European incentives for climate action and digital innovation were driving strong demand for talent in renewable energy, smart infrastructure, cybersecurity, AI models and data engineering. These trends often offer long-term contracts, attractive salaries, while providing some evident pathways to permanent employment with high rewards.
*) Some key messages from the recent Monitor’s report:
– There were over 13 million more persons in employment in the EU27 in 2022 compared to 2011 and over 9 million of this increase was in well-paid, top-quintile jobs.
– 2011–2022 has been a period of employment upgrading in the EU as a whole and the majority of Member States experienced stronger employment growth in well-paid compared to low-paid or mid-paid jobs (only exceptions: Italy, Bulgaria).
– The EU27 female workforce has expanded faster than the male workforce notably in mid- and high-paid jobs.
More in Eurofound publication “Structural change in EU labour markets: a generation of employment shifts”, in: https://www.eurofound.europa.eu/en/resources/european-jobs-monitor. And additionally: https://www.eurofound.europa.eu/en/publications/2024/changing-structure-employment-eu-annual-review-2023.
Employment and digitalisation
Employment issues have been in the center of the EU integration since its inception, while the digitalisation has been on the EU policy agenda only since the beginning if this century.
While the great strides have been made in this area over the past two decades, the digital transformation is not yet complete: thus, the mentioned recent “jobs monitor report” seeks to deepen the public and governance’s understanding of the “co-evolution” of jobs and the digital European perspective.
Thus, by applying the concepts of regional convergence, the report assesses member states’ progress wider EU’s social-policy targets, where the “states are growing together and where digital gaps are expanding”, as the report mentions. It also considers existing gaps in the progress of digitalisation among socio-economic groups and EU regions.
Taking into consideration almost all indicators, the report comes to the conclusion that “historically lower-performing member states have been catching up with the digital leaders”. However, at a “more granular level”, the corporate digitalisation has been uneven among the EU states, and significant inequalities persist among regions and socio-economic groups.
Basically, the report shines a light on the role of digitalisation in the EU’s socio-economic convergence and considers that the progress in both would benefit, first of all, the digitalisation process in the private sector.
Source and reference: https://www.irishtimes.com/special-reports/2025/07/25/does-ai-represent-a-threat-or-an-opportunity-for-the-workforce/#msdynmkt_trackingcontext=f8ce1c51-9b05-4b9b-966d-d34516e30000
The findings from the Irish Press have shown that access to wider digitalisation “is still an issue for vulnerable groups, in particular low-income households, older individuals and those with lower levels of education”. Importantly, these are the groups that are more reliant on public services, and they may struggle to access e-government models. While progress is being made, some groups remain at risk of being left behind in the digital transition. Considering this, the reviewers highlight a range of policy approaches being deployed across Europe that aim to narrow the digital divide.
Note on the EU-wide digital strategy
The European digitalisation strategy is supported by regulations aiming to protect citizens, businesses and boost competitiveness in the single market; there the following main “instruments”, among some other executive means:
– the Digital Services Act, setting out new standards for the accountability of online platforms regarding illegal content, disinformation and other societal risks;
– the Digital Markets Act, establishing a set of objective criteria for qualifying large online platforms as ‘gatekeepers;
– the Artificial Intelligence Act (AI Act), assigning applications of AI to three risk categories and prescribing mitigating and control actions;
– Directive 2024/2831 on improving working conditions in platform work;
– the European Chips Act, addressing semiconductor shortages and strengthening Europe’s technological leadership; and
– the European Data Act, establishing clear and fair rules for accessing and using data in the European data economy.
More on these legal acts in the following publications, e.g.:
= https://www.integrin.dk/2025/06/21/european-digital-decade-and-business-initiatives-and-perspectives/;
= https://www.integrin.dk/2024/11/29/first-risk-assessment-under-the-digital-service-act/; and
= https://www.integrin.dk/2024/07/29/digital-trade-assisting-the-eu-wide-growth-and-digital-transition/.
Besides, about 26 % of the EU-wide Recovery and Resilience Facility, RRF (worth € 150 billion) is dedicated to digitalisation. Then, the second report on the Digital Decade underlines progress made by Member States on digital key performance indicators in the areas of digital infrastructure, business transformation, skills and public services.
More on the RRF in e.g.: https://www.integrin.dk/2024/10/12/european-resilience-and-recovery-the-third-scoreboard/
State of the Digital Decade: the second assessment on employment
The 2nd report on the State of the Digital Decade, published in July 2024, assesses the EU’s progress towards achieving its digital goals by 2030. The report highlights the need for strengthened collective action to achieve the ambitious targets set by the Digital Decade Policy Program. It analyzes both EU-wide and national progress, including the first-ever analysis of national Digital Decade strategic roadmaps.
More in: https://digital-strategy.ec.europa.eu/en/news/second-report-state-digital-decade-calls-strengthened-collective-action-propel-eus-digital
The report also highlights that progress has been uneven, in particular in the areas of digitalisation of small and medium-sized enterprises and assuring the digital skills: thus, recent Eurofound report explores these disparities and measures the extent to which convergence has been reached; it identifies socioeconomic groups, regions and businesses still affected by the digital divide.
Thus, over the past two decades, great strides have been made in the EU digitalisation process: according to almost all indicators, historically lower-performing EU states have been catching up with the digital leaders; however, significant regional and socioeconomic inequalities persist.
When charting progress towards digitalisation, three levels of digital inclusion should be considered, argues the Eurofound: access to infrastructure and devices, development of digital skills, and transformation of access and skills into tangible outcomes.
Besides, the access to job-market is still a problematic issue for vulnerable groups: i.e. low-income households, older individuals and those with lower levels of education; they are also more reliant on public services and may struggle in accessing AI models.
Those with higher levels of education, e.g. those in the active workforce and those in the 25–44 age cohorts are better positioned, because they generally have access and the skills to harvest the advantages of using the internet and reap tangible benefits (social, economic and/or cultural).
Upward convergence was also recorded in the digitalisation of Europe’s businesses; once again, however, variable progress is being made by different EU states: larger firms and those located in urban areas have higher levels of digitalisation.
There are several examples of local employment initiatives among the EU-27 member states, which are aimed at bridging the existing digital divide, as well as addressing specific socioeconomic groups and firms that need support.
More on digital convergence and employment in: https://www.eurofound.europa.eu/en/publications/2025/narrowing-digital-divide-economic-and-social-convergence-europes-digital