{
  "title": "Labor Market and Digitalization in Portugal",
  "publication": "Selected Issues Papers, July 11, 2023",
  "sourceUrl": "https://www.imf.org/en/publications/selected-issues-papers/issues/2023/07/11/labor-market-and-digitalization-in-portugal-535869",
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  "summary": "This paper analyzes Portugal's labor market and digitalization trends during COVID-19. Portugal had a milder impact on its labor market than previous recessions, with smaller employment declines and less unemployment.",
  "sections": [
    {
      "heading": "Key findings on labor market impact and digitalization",
      "content": "- Portugal experienced a milder labor market impact during COVID-19 than in previous recessions, with smaller employment declines and less unemployment.\n- Labor force participation sharply dropped, especially among low-skilled and young workers.\n- Contact-intensive and non-digital jobs and young and low-skilled workers were disproportionately affected.\n- Digital employment in Portugal grew while non-digital employment decreased.\n- Regression analysis for Europe and the US suggests a temporary rise in digital employment during the pandemic."
    },
    {
      "heading": "Analysis and interpretation",
      "content": "- Aggregate labor market dynamics show differential effects by skill level and age, with low-skilled and young workers facing the largest participation declines.\n- Sectoral dynamics indicate contact-intensive and non-digital occupations bore the brunt of job losses, whereas digital occupations expanded.\n- Comparative regression evidence implies the pandemic induced a temporary shift toward digital employment in Europe and the US, consistent with observed patterns in Portugal."
    },
    {
      "heading": "Policy recommendations",
      "content": "- Emphasize investments in digitalization to support job creation in digital sectors.\n- Prioritize skills development to improve resilience of the labor force, with particular attention to low-skilled and young workers vulnerable to future shocks.\n- Consider policies that support transitions from contact-intensive and non-digital jobs to digital employment opportunities.\n\n---\n\n Content in this bundle\n\n- Labor Market and Digitalization in Portugal; Selected Issue Paper No. 2023/047; June 1, 2023\n  - Labor Market and Digitalization in Portugal; Selected Issue Paper No. 2023/047; June 1, 2023 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Labor Market and Digitalization in Portugal; Selected Issue Paper No. 2023/047; June 1, 2023 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/selected-issues-papers/issues/2023/07/11/labor-market-and-digitalization-in-portugal-535869"
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    "Authors: Ippei Shibata",
    "Published: July 11, 2023",
    "Series: Selected Issues Papers",
    "DOI: https://doi.org/10.5089/9798400248344.018",
    "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.",
    "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.",
    "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.",
    "**Labor Market and Digitalization in Portugal; Selected Issue Paper No. 2023/047; June 1, 2023**"
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