On Monday 16 October, the Statec published its annual report "Work and Social Cohesion", a 160-page analysis that looks at digitalisation, inequality and the risk of poverty in Luxembourg. These three themes are closely intertwined, and the report highlights the crucial importance of digital skills in the Luxembourg labour market.
Digitalisation: A Key Factor
Luxembourg is at the forefront of the use of digital skills, with 47% of its labour force frequently using these skills, ahead of countries such as the Netherlands, Sweden, France, Germany, and Belgium. Statec points out that this intensive use of digital skills is a driver of differentiation in the Luxembourg professional world, favouring the acquisition of additional cognitive skills and limiting manual tasks.
Inequalities and Digital Skills
However, this increased digitalisation accentuates social inequalities. People with strong digital skills are valued, while those with lower skills risk being marginalised. The report states that workers who have recently left their jobs have often performed less digital and more physical tasks, highlighting the importance of digital skills in maintaining employability. In addition, a digital divide is evident between different levels of education: 86% of master’s graduates regularly use digital devices at work, compared to only 26% of primary school graduates.
Impact on Teleworking and Wages
Teleworking is also an illustration of this divide, with 32% of residents teleworking, the majority of whom are executives or in intellectual professions. Mastering digital skills also influences wages: Cognitive and digital skills are more valued, contributing to wage disparities. The report states that among the top 40% of workers, the use of digital skills is the most common. Conversely, the 20% of the lowest-paid workers show low use of these skills, highlighting the significant impact of digitalisation on wages and social inequalities.
In conclusion, the Statec report shows that digitalisation in Luxembourg, while improving productivity and efficiency, also poses major challenges in terms of social cohesion and equal opportunities. The need for a proactive policy to close these digital gaps is paramount to prevent these trends from further reinforcing existing inequalities.