Regional adaptability to digital change: May the Swabian force be with you

The study explores to what extent adaptation to digital change has affected regional employment growth and regional disparities in Germany over the past decade. Using data from administrative sources the analysis finds no evidence for a net decline in employment in connection with technological progress during this period. On the contrary, labour market regions where many employees perform occupational tasks susceptible to automation have fared comparatively well so far. After all, these regions often comprise strong manufacturing industries, e.g. in rural southern Germany. In regions dominated by less prosperous industries, however, implementation of job creation potentials may turn out to be a much greater challenge.