Comparative Analysis of the Relationship Between Workforce Demand and Digitalization at Company Level in Romania and Germany

Adina-Maria Voda
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Adina-Maria Voda: Bucharest University of Economic Studies, Bucharest, Romania

Economics and Applied Informatics, 2025, issue 1, 98-115

Abstract: The impact of technology on the workforce demand at the company level can result in job loss due to automation, but it can also create new jobs through the development of new technologies and increased demand for products and services. We use correlation statistical analysis of the data collected in 2018 by Eurofound through the European Company Survey (ECS 2019) to analyze the effects of technology on workforce demand in Romania and Germany and to compare the two countries in terms of digitalization and employment evolution. Although at first glance the substitution effect suggests a significant risk of job loss due to digitalization, the analysis of data obtained from the ECS 2019 survey at the company level in Romania highlights the opposite. Thus, we observe an upward trend in employment growth in Romanian companies with various levels of digitalization, but a weak correlation between the two suggesting there are other factors involved. We find that usage of personalized software and data analysis are positively correlated with employment growth in both countries. Likewise, robots adoption in Romania do not have a clear effect on employment, compared to the positive employment trends in Germany during 2016-2018.

Keywords: digitalization; workforce; labor market; e-commerce; personalized software; robotization; Romania; Germany; ECS19 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ddj:fseeai:y:2025:i:1:p:98-115

DOI: 10.35219/eai15840409490

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