Digitalization and AI are reshaping working life: maintaining skills during transitions and youth employment as a challenge

by EntrepreNerd

Companies were asked how digitalization, automation and the development of artificial intelligence have affected their personnel needs.

Two-thirds of companies employing more than 250 people say that work productivity has improved and that time spent on administration has been halved due to digitalization, automation, and artificial intelligence (AI). This was revealed in a nationwide skills survey conducted by the Chambers of Commerce in August, with 93 companies from Southwest Finland participating.

The survey asked companies how digitalization, automation, and the development of AI have affected their personnel needs. Almost half (48%) of respondents from Southwest Finland reported improved productivity, and nearly a quarter (23%) said administrative time had decreased. Among all companies nationwide, 22% said they had reduced manual work (compared to 18% in Southwest Finland) and just over 10% had reduced expert work (compared to 13% in Southwest Finland). Both of these figures show improvement compared to last year.

Over 30% of respondents in Southwest Finland — and more than a quarter nationwide — believe that digital projects have primarily created employment. In addition, a quarter of companies in the region say that digitalization, automation, or AI development has not affected their personnel needs.

Growing concerns over youth and long-term unemployment

The number of long-term unemployed and unemployed young people under 25 has increased significantly over the past year. The government’s employment voucher, aimed at those who have been unemployed for at least six months — especially young people in a weak labor market position — is one way to help youth employment. However, there is growing concern about whether the development of artificial intelligence is eroding entry-level job opportunities.

"Although AI enables companies to operate more efficiently and creates new ways of working and job descriptions, we must ensure that young people still have access to entry-level jobs that serve as stepping stones into working life," reminds Satu Lindén, Skills Expert at the Turku Chamber of Commerce.

The survey also asked whether companies had hired recent graduates from local educational institutions or universities within the past two years. Among respondents in Southwest Finland, about 40% said they had hired graduates from vocational schools, and one-third from universities, while 37% had not. Companies were also asked whether they had hired young people for internships or summer jobs within the past year.

"Encouragingly, 77% of companies in Southwest Finland have hired young people for internships or summer jobs, but still, more than one in five have not offered such opportunities," Lindén says.

Supporting continuous learning amid rapid change

In a time of economic uncertainty, prolonged unemployment, and rapid technological advancement, it is crucial that young graduates enter the workforce quickly to deepen their professional skills. The education system must ensure that graduates are equipped to maintain and continuously develop their competence.

Of all respondents, 84% were satisfied with university graduates’ ability to learn new things and adapt to change, with only 16% dissatisfied. Similarly, 75% were at least somewhat satisfied with vocational graduates’ adaptability and learning skills, while one-quarter expressed dissatisfaction.

According to the survey, companies already have strong practices for skills development, and their workforce capabilities generally meet the needs brought by technological change. However, this does not shield workers from the transitions and disruptions of modern working life. Even during periods of unemployment, individuals should be able to update their skills quickly and flexibly to meet evolving demands. Continuous learning opportunities should therefore include short, targeted training programs that reflect the changing needs of industries and individuals.

"Technological development provides major opportunities for companies to increase productivity. However, skills must keep up with — and ideally stay ahead of — the change. This challenges both higher education and continuing education providers, as well as companies’ internal training and leadership models," says Satu Lindén, Skills Expert at the Turku Chamber of Commerce.

With information: Turku Chamber of Commerce.