Digital transformation and the labour market: women run the risk of falling behind

How is the digital transformation impacting the Swiss economy and labour market? The NRP 77 research project, led by Conny Wunsch (University of Basel), uses surveys of companies and job seekers to demonstrate how profoundly digital change influences working conditions, expectations of employees' skills, and careers. The project investigated how well labour market participants are prepared for the digital transformation and which groups are under particular pressure. Conny Wunsch's team concluded that women and older job seekers risk falling behind men and younger individuals in the digital transformation.

The most important findings

The project demonstrates that female students invest significantly less in digital skills than their male counterparts. According to the study, there are three reasons for this: They underestimate the benefits of digital skills and the requirements for these skills, and they tend to avoid jobs where such skills are in demand.

According to the research team, there are also skills gaps among job seekers, especially women and older individuals. They often underestimate their digital skills, experience skills deficiencies, and rarely apply for jobs with requirements they do not fully meet. Additionally, they apply for fewer lower-paying jobs, which reduces their chances of gaining a foothold in the labour market.

The digital transformation is also impacting companies, especially those that are receptive to digital innovations and increasingly focusing on performance incentives. At the same time, HR analysis tools are leading to decentralised decision-making processes, which give employees greater responsibility.

Significance for policy and practice

Digitalisation is turning the labour market upside down and presenting both companies and employees with new challenges. To survive in a labour market transformed by digitalisation, you must be flexible, invest in digital skills, and realistically assess both requirements and your own abilities. The digital transformation offers many opportunities, but only if the necessary skills can be developed.

The primary obstacles here are gender-specific barriers and a lack of willingness to adapt, which can be addressed with targeted measures. The research team highlights various ways to achieve this, such as informing students about the importance of digital skills or reviewing degree programmes to ensure they meet the demands of the digital workplace. Targeted support for at-risk groups (women, older job seekers) can also eliminate barriers to accessing the labour market, for instance, through further training in the digital sector.

Three main messages

1. The digital transformation brings significant changes to employment relationships, hierarchical structures and organisational design. Digital technologies enable better and more cost-efficient monitoring, leading companies to create more performance incentives for their employees. Companies that are more open to new technologies tend to implement these incentives more frequently than those that are sceptical. The use of HR analysis tools also decentralises decision-making processes, providing employees with more responsibility. As a result, some employees may benefit from the digital transformation.
2. Female students risk falling behind in the digital transformation, as they invest significantly less in acquiring digital skills compared to their male peers. This gender gap in skills acquisition stems from three key factors. Firstly, female students are, on the whole, less likely to believe that digital skills yield strong returns. Secondly, they tend to underestimate the digital proficiency required for relevant jobs. Finally, they exhibit a greater aversion to roles centred around digital skills. Addressing these barriers is essential to prevent a widening gender gap in the labour market.
3. Similar gender-specific differences can be observed among job seekers. Female job seekers consistently rate their digital skills lower than their male counterparts and are more likely to have potential skills gaps. The same trend is evident among older job seekers in comparison to younger ones. This confirms the concern that women and older job seekers represent at-risk groups in the digital transformation. Furthermore, job seekers tend to show limited willingness to pursue roles requiring skills different from those used in their previous employment, even when large overlaps exist. Additionally, there is a lack of willingness to accept jobs with lower salaries, especially among male job seekers. This rigidity regarding skills and salary expectations may hinder job seekers' adaptability and success in a rapidly evolving labour market, both in the short and long term.

For an insight into the methods used by the researchers and further background information about the project, visit the NRP 77 website:

The Swiss labour market in the digital transformation

Further research projects on "Digital Transformation" as part of the National Research Programme NRP 77 can be found here:

Project overview