Industrial robots, and information and communication technology: the employment effects in EU labour markets

This paper explores the effects of industrial robots and information and communication technology (ICT) on regional employment in European Union countries. The empirical analysis relies on a harmonised comprehensive regional dataset that combines business statistics and national and regional accounts data. This rich dataset enables us to provide detailed insights into the employment effects of automation and computerisation in EU regions for the period 2001–16. The results suggest relatively weak effects on regional total employment dynamics. However, industrial robots show negative employment effects in local manufacturing industries and positive employment effects in local non-manufacturing industries. While the negative effect is concentrated in particular local manufacturing industries, the positive effect has operated in local service industries. Information technology investments show positive employment effects in local manufacturing industries and some individual local service industries, while communication technology investments are shown to be irrelevant for employment dynamics. In contrast, software and database investments have had a predominantly negative association with local employment.