Navigating occupational digitalization via skillshed analysis

Abstract

The rapid digitalization of jobs in the United States and globally provides both an economic opportunity and a challenge for upskilling and reskilling the workforce. Retraining and reintegrating displaced or at-risk workers, particularly in a competitive labor market, brings significant economic benefits to communities, employers, and employees. Individuals in at-risk or declining occupations likely lack requisite digital literacy and associated skills that enable them to transition smoothly into roles that require digital proficiency. Drawing from research indicating the rapid digitalization of the U.S. economy and workforce, this study employs skillshed analysis to examine a sample of vulnerable occupations within coal-related industries. The goal is to evaluate training gaps and wage differentials for individuals shifting from coal-related occupations to roles requiring higher levels of digital literacy. Providing quality reemployment options for coal-economy workers reduces the barriers to transitioning to more sustainable energy provision, yet prior studies have found that coal-economy workers possess lower levels of digital literacy. Our study reaffirms these prior findings that many coal economy workers lack the requisite knowledge, training, and educational attainment to easily transition to occupations requiring high degrees of digitalization. As a result, to be successful in retraining and upskilling those in coal-related occupations and to meet sustainable development goals, it is necessary to assist these workers in their transition into viable occupations.