Measuring Digital Labour Market Transitions with a Digital Semantic Score: An AI-Based Methodology Applied to the Dutch Labour Market

Abstract

The digital transformation of the Dutch labour market is reshaping occupational language, career pathways, and job-related skills. Addressing these changes requires granular labour market intelligence. This paper develops an AI-based methodology to analyse digitalisation using data covering millions of Dutch job profiles. The methodology combines embedding-based similarity search and large language model classification to map unstructured job information to harmonised ESCO occupations. We also introduce a Digital Semantic Score that measures how strongly job titles and skills are associated with digital concepts relative to a non-digital reference. Using embeddings and cosine similarity to transparent digital and non-digital anchor groups, this indicator moves beyond keyword-based approaches by capturing broader digital meanings in occupational language and worker skill profiles. It enables analysis across occupations, career transitions, emerging job-title vocabulary, and skill digitality. The findings reveal that digitalisation is unevenly distributed across the labour market. Digital job-title language is most prominent among managerial, professional and ICT-related occupations, but is increasingly visible in hybrid business, marketing and automation-related roles. Career-transition analyses show that movement toward digital work is pathway-dependent, while skill analyses highlight the multidimensional nature of digital capability, encompassing technical, hybrid and business-systems skills. By combining profile data, AI-supported occupational classification and semantic scoring, this study advances AI-driven labour market analytics and provides a scalable framework for monitoring digital labour market change. The methodology helps identify emerging skill needs, support reskilling strategies, and inform policies addressing skills mismatches and labour shortages in the Netherlands.