Impact of Digitalization on the Labour Market: The Case of North Macedonia

Abstract

The impact of digitalization on the labour market is very complex and is manifested in different conditions for job creation and job protection, changed needs for occupations and skills, coping with skills mismatch and labour shortage etc. The aim of the research is to determine the possible implications of digitalization on the labour market in North Macedonia, by analyzing relevant labour market indicators and the results of employees’ survey based on identified hypotheses. The analysis of the labour market indicators shows that despite the positive changes, the situation on the Macedonian labour market remains unfavorable i.e. low employment rates, growing skills mismatch and labour shortages in conditions of still high unemployment. The survey results indicate that the digitalization may not cause serious job losses, but it can lead to significant shifts in the employment structure (regarding sectors, occupations, skills, nature of jobs, pressure on the lower skill levels etc.). The influence of digitalization on the labour demand will depend on the employment sector and job profile, as well as on the investments in technology and relevant experience to use it. Also, digitalization could reduce the labour shortages caused by demographic ageing. The survey results show that digitalization will impose changes in the education and professional expertise, management style and organizational culture, as well as in trade union organizations. The findings of this research are meaningful for policy makers, state institutions, employers, trade unions and other stakeholders. The digitalization implies need for coherent approach of all involved parties in North Macedonia.