Closing the Digital 'Skill' Divide: The Payoff for Workers, Business, and the Economy

Even before the coronavirus pandemic began, policymakers, businesses, and workforce advocates were already recognizing that workers were not being replaced by robots, but rather, being called upon to work hand-in-glove with rapidly evolving technology. When the pandemic struck, millions of U.S. companies hustled to change how they did business. Nearly every worker suddenly had to contend with new digital demands -- even those in frontline, essential roles. The impact of the digital skill divide became more acute, weighing disproportionately on workers of color and smaller businesses struggling to survive a tumultuous economy. Now -- as leaders design labor market policies to drive a thriving and inclusive economy -- it is imperative to understand this digital transformation. This report takes a first-ever look at the demand for digital skills in the U.S. economy, as measured by a dataset of 43 million "Help Wanted" ads posted during 2021. The findings in this analysis are unequivocal: (1) there is overwhelming demand for digital skills in the labor market; (2) many workers have not had sufficient opportunity to build such skills; (3) public investments in workforce development and education are especially vital; (4) closing the digital skill divide has major payoffs for businesses; and (5) closing the digital skill divide can also generate economic benefits for individual workers and the broader economy. [This report was written with Nye Hodge.]