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This study applies large language models and embedding-based similarity search to quantify digital transformation within the Dutch labour market, moving beyond simple keyword matching to capture nuanced semantic shifts in job descriptions. By introducing a Digital Semantic Score, the research provides a scalable framework for analyzing skill gaps and career pathways that is directly relevant to AI-driven workforce analytics and policy planning.
Measuring Digital Labour Market Transitions with a Digital Semantic Score: An AI-Based Methodology Applied to the Dutch Labour Market
arXiv:2608.24222v1 Announce Type: new 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.
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.
Computation and Language (cs.CL)
arXiv:2608.24222 [cs.CL]
(or arXiv:2608.24222v1 [cs.CL] for this version)
https://doi.org/10.48550/arXiv.2608.24222 Focus to learn more arXiv-issued DOI via DataCite (pending registration)
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