Digital transformation and its impact on labour markets and social protection

The ESDE 2018 review finds that labour market developments and social indicators remain favourable. Yet, major challenges lie ahead. geing will require much higher productivity growth in the future. t the same time, rapid restructuring, robotisation and digitalisation are fuelling productivity. They may, however, come at the cost of job losses, especially in manufacturing. Job displacements will affect mainly low-skilled and routine workers. On the other hand, investing in skills and qualifications can turn digitalisation into a net job creator by promoting innovation, boosting physical investment and accelerating productivity growth. However, in terms of skills the EU keeps lagging behind its sian competitors. Social background strongly affects overall educational outcomes as well as performance on the labour market.

Digitalisation and platform work are rising in the growing services’ sector and are changing the face of labour. While platform work currently makes only a small share of the EU's labour force, it is increasing fast and could bring about more atypical forms of work in the future, with lower attachment to public social security schemes. This development may challenge the EU's social security schemes. Higher government funding of the EU's social insurances may become inevitable.

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