Abstract. Digitalization is currently transforming labor markets and the sustainable development of our society, as technologies are constantly worldwide integrated into everyday life and digitally skills are becoming a must on the labor market. Under such context, our paper aims to carry out a cluster analysis among the 27 EU member states to investigate how digitalization has shaped the EU labor market so far and to pinpoint the main similarities among the EU countries in terms of digitalization, economic development and sustainability. The resulting clusters may be used to characterise the EU economy in connection to the two fundamental social transitions that are currently taking place, digitalization and sustainability, with the aim of emphasizing the key features of the component countries. Using a set of relevant indicators, we were able to group the countries into 3 clusters and to differentiate between digitalized and sustainable economies and the least digitalized or with less sustainable economic developments countries.

Keywords: digitalization, labor market, sustainability, cluster analysis.