Economics of Development
Economics of Development
ISSN 1683-1942 e-ISSN 2304-6155 UDC 33
DOI: 10.63341/econ
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Digital competencies and human capital for sustainable economic development

Oleg Yarema*

oleh.yarema@lnu.edu.ua

Received 23.04.2026, Revised 27.07.2026, Accepted 01.09.2026 Published 02.10.2026

Abstract

The purpose of this study was to investigate how digital competencies and digital human capital contribute to sustainable economic development by influencing productivity, competitiveness, innovation capacity, labour-market transformation, and long-term economic resilience. The materials consisted of open data and analytical reports published by European and international institutions, including sources on digital skills, artificial intelligence adoption, labour-market transformation, and digital development. The methodological basis of the study included comparative analysis, synthesis of institutional and statistical data, structural analysis of labour-market trends, calculation of digital-skills gaps and normalised indicators, scenario analysis, and a strengths, weaknesses, opportunities, and threats matrix. The results showed that digital competencies affect sustainable development through productivity growth, innovation capacity, economic inclusion, labour-market adaptability, and institutional resilience. Particular attention was devoted to evaluating Ukraine’s digital transformation in comparison with the European Union and to identifying strategic policy priorities capable of strengthening digital human capital in the context of European integration and post-war economic recovery. The comparative analysis indicated that Ukraine is close to the European Union average in basic digital skills but still faces significant risks related to uneven access, migration of skilled workers, insufficient artificial intelligence literacy, and outdated educational programmes. The extended quantitative assessment showed that, if the 2021-2025 trend continues, Ukraine may reach only about 64.4 percent of adults with at least basic digital skills by 2030, remaining 15.6 percentage points below the recommended benchmark. The article argued that Ukraine’s digital human-capital strategy should combine lifelong learning, data literacy, artificial intelligence literacy, science, technology, engineering, and mathematics education, digital inclusion, and smart regional policy. The practical value of the study lies in the proposed framework for connecting digital competencies with productivity, competitiveness, and recovery policy


Keywords:

workforce reskilling; artificial intelligence literacy; data literacy; digital inclusion; smart economy; productivity growth

https://doi.org/10.63341/econ/3.2026.46

Retrieved from Volume 25, No. 3, 2026

Pages 46-57

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Suggested citation

Yarema, O. (2026). Digital competencies and human capital for sustainable economic development. Economics of Development, 25(3), 46-57. https://doi.org/10.63341/econ/3.2026.46