Towards a major “Schumpeterian” employment adjustment

We will illustrate our point with the case of the euro zone. In many sectors of activity, technological progress is going to lead to significant job destruction: The automotive sector, due to the transition to electric vehicles; Financial services, due to the digitalisation of both retail and investment banking; Retail and real estate services, due to the development of online platforms; Energy, due to the phase-out of fossil fuels and their use; Industry as a whole, due to automation. It is far from obvious that this job destruction will be able to be offset by equivalent job creation in new technologies, online platforms, non-automatable consumer services, healthcare, etc.