In this report, Mckinsey & Company examine the longer term implications of automation, migration, workforce transitions and the shifting geography of employment.
Total employment in the 27 European Union countries plus Switzerland and the United Kingdom rose by almost 10 percent between 2003 and 2018 to record highs. Our analysis of Europe’s regional labour markets suggests that the future of work has already begun unfolding. First, the occupational mix shifted. In all regions, the most highly skilled individuals enjoyed the strongest job growth over the last decade, while middle-skill workers had fewer opportunities. COVID-19 and increased automation adoption triggered by the pandemic may accelerate this trend. Second, employment growth has been concentrated in a handful of regions. Third, labour mobility before the crisis rose as the geography of employment shifted. In contrast to the United States, labour mobility in the EU has been rising as workers in the lower-income regions migrate to the dynamic cities to fill jobs.