Labor Market and Digitalization in Portugal
Selected Issues Papers, July 11, 2023
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- Labor Market and Digitalization in Portugal
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Bibliographic details
- Authors: Ippei Shibata
- Published: July 11, 2023
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798400248344.018
Key findings on labor market impact and digitalization
- Portugal experienced a milder labor market impact during COVID-19 than in previous recessions, with smaller employment declines and less unemployment.
- Labor force participation sharply dropped, especially among low-skilled and young workers.
- Contact-intensive and non-digital jobs and young and low-skilled workers were disproportionately affected.
- Digital employment in Portugal grew while non-digital employment decreased.
- Regression analysis for Europe and the US suggests a temporary rise in digital employment during the pandemic.
Analysis and interpretation
- Aggregate labor market dynamics show differential effects by skill level and age, with low-skilled and young workers facing the largest participation declines.
- Sectoral dynamics indicate contact-intensive and non-digital occupations bore the brunt of job losses, whereas digital occupations expanded.
- Comparative regression evidence implies the pandemic induced a temporary shift toward digital employment in Europe and the US, consistent with observed patterns in Portugal.
Policy recommendations
- Emphasize investments in digitalization to support job creation in digital sectors.
- Prioritize skills development to improve resilience of the labor force, with particular attention to low-skilled and young workers vulnerable to future shocks.
- Consider policies that support transitions from contact-intensive and non-digital jobs to digital employment opportunities.
Content in this bundle
- Labor Market and Digitalization in Portugal; Selected Issue Paper No. 2023/047; June 1, 2023