Evaluating impact on demand of labour

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Does the option affect the demand for labour?[1]


This key question focuses on the composition of employment in terms of skills. Skill profiles may significantly differ across industries and firms. Examples of new skill attainment are: knowledge of financial markets and institutions, teaching experience, expertise of regulatory issues, legal and contractual expertise, managerial expertise, sector-specific technical skills, or other. Public policies can affect these skill profiles either directly, supporting education and training programmes for all, targeted training programmes and lifelong learning attitudes. Indirectly, they can support innovations (product-related, techincal change, innovative organisational practices) that ultimately will require new skills or more skilled work force. The main aspects to be considered from this perspective are: the employment distribution across different segments of society, its distribution across different skill categories (i.e. considering their qualifications in terms of basic and advanced education and training); and its distribution across different sectors of activity (i.e. across a variety of manufacturing, service and primary activities). Employment composition characterises the quality of human capital available and its evolution over time. For instance, an ageing population of workers is normally more experienced and skilled in established activities, while it is less flexible to changes in specialisation and less prone to the generation, adoption, and use of a new technology. A high share of educated workers improves the overall benefits stemming from investments in training on the job. A significant concentration of employment in high technology industries will imply high overall labour productivity levels and will eventually determine spill-over effects to other, more traditional, economic activities. By contrast, a complete disappearance (or dramatic reduction) of traditional labour intensive occupations can determine a loss of expertise which cannot be completely substituted for by high technology industries (for instance biotechnological developments cannot replace agriculture; nor can a laser technology completely substitute for cutting activities in the textile industry). Apart from direct economic implications of employment composition, one should also consider the likely social consequences of a given distribution of employment opportunities.[1]



The following Eurostat Structural Indicators are relevant to address the key question:

The following Sustainable Development Indicators (Economic Development) are relevant to address the key question:

See also



  1. 1.0 1.1 1.2 1.3 JRC: IA TOOLS. Supporting inpact assessment in the European Commission. [1]

The text is for information only and is not designed to interpret or replace any reference documents. The text is partially adapted from: