Understanding Job Creation, Destruction and Skills Shifts in Times of Green and Digital Transitions

ATHENS, Greece - Jan. 21, 2026 - PRLog -- Early Insights from the ISABEL Project

Labour markets across Europe are undergoing rapid transformation as digitalisation and automation advance alongside the green transition. These forces are reshaping occupations, changing skill requirements and creating uneven patterns of job creation and destruction (JCD) across regions and social groups. Understanding these dynamics in an evidence-based way is increasingly critical for policymakers, researchers and practitioners working on employment, skills and fair transition strategies.

During its first year, the ISABEL project focused on building a solid conceptual and analytical foundation to better understand how labour markets evolve under green and digital pressures. This initial phase examined how occupations and skills are affected by technological and structural change, while also reviewing existing policy responses across European contexts.

Early findings show that the green transition is driving deep restructuring, particularly in regions dependent on fossil fuels. While jobs linked to carbon-intensive activities are declining, new employment opportunities are emerging in renewable energy, green construction, circular economy services and sustainability-related professions. In parallel, the digital transition is reshaping all sectors, reducing demand for routine tasks while increasing the need for advanced digital, analytical and transversal skills such as adaptability and problem-solving.

From a methodological perspective, ISABEL highlights the importance of integrated analytical approaches that combine quantitative data with qualitative and discursive insights. Such approaches are essential to capture the complexity of labour market change and emerging skill demands. Policy analysis conducted in the first year also points to the central role of education and lifelong learning in managing transition-driven JCD, alongside the need for updated regulation to address new forms of digital work and migration policies to respond to skill shortages.

A further key insight concerns the responsible use of data and artificial intelligence in labour market analysis. ISABEL places strong emphasis on ethical, legal and societal considerations, ensuring that data-driven tools promote transparency, inclusion and fairness rather than reinforcing existing inequalities.

As the project enters its second year, attention shifts to the development and early validation of digital research and policy-support tools. These will integrate secondary and primary data through the ISABEL data lake, complemented by surveys of workers and firms across six countries: Denmark, Greece, Spain, Serbia, Poland and the United Kingdom. Living labs in selected regions will further support context-sensitive analysis of local labour market dynamics.

Guided by its conceptual framework on regional labour market transformation, ISABEL aims to bridge research, data science and policy practice, contributing to more informed and equitable labour market transitions across Europe. The ISABEL project has received funding from the European Union's Horizon Europe research and innovation programme under grant agreement No 101177687.
Visit htpp://www.isabelproject.eu for details