CC BY-NC-ND 4.0The purpose of this research is the study of the effects of digital transforma-
tion on employment and their possible correlation with the labor deficit. The labor deficit
in European countries, and especially those of the European Union, is studied. Secondary
data regarding Information and Communications Technology (ICT) specialist skills, the
employment rate, and the Digital Economy and Society Index (DESI) are collected and
analyzed. Data analysis reveals that, on one hand, the labor deficit is undeniable; however,
the greatest deficit relates to the lack of digital competences. On the other hand, with rapid
technological advancements and the introduction of Artificial Intelligence to the production process, a new environment will be formulated both at the economic and social level.
This study is based on the secondary data of specific indexes; in future research, an empirical study will be conducted in European countries to study labor digitalization in depth,
especially in the post-COVID-19 era, as this pandemic has increased digitalization in all
countries. The adoption of new legislative and prescriptive frameworks is necessary to address the labor deficit. It is necessary to take measures both at the European and national
level, as well as to effectively utilize programs and initiatives that will protect the preexisting workforce and will establish the ground for new employees. This can be activated
mainly through training, either in the form of new education (reskilling) or re-education (upskilling). The originality of this research is based on the fact that it explores the impact
of ICT Skills on employment and the dependence between ICT Skills and DESI. Its value is
in revealing the structural problems of the labor market in Europe and the cross-country
comparison of how digitalization can help to solve the labor deficit problem in European
countries
