Effects of digitalization on the labor market in Baden-Wuerttemberg

Abstract

The technological change is constantly progressing. Digitalization opens up great opportunities for a higher quality of life. It enables more efficient business models and it also has a significant impact on the labor market. More and more tasks, which could be done only by humans so far, will be taken over by computers or robots in the future. It is controversial whether digitalization will lead to a higher unemployment or to a growth in employment because digitalization also creates new kind of jobs. While the impact on labor markets can not be clearly predicted, the fear of digitalization is huge. Many employees in Germany have jobs with a high potential of substitutability. The proportion of employees affected by severe effects of digitalization is estimated to range from 8.1% to 20.4% - depending on the federal-state. In Baden-Wuerttemberg, a very high substitution potential is assumed. Will unemployment significantly rise in the southwest part of Germany?