Imagining people’s functions in everyday life and work without the use of ICT, seems difficult. Their application is ubiquitous everywhere, regardless of which aspect it is viewed from, because it has a strong function in ensuring the competitiveness of various systems at the micro and macro levels. Numerous national and multinational strategies try to encourage educational systems to put a greater focus on ICT to more efficiently acquire skills, competencies, and knowledge, which should represent added value to all generations in the future. This article analyzes the progress of the ICT development index (IDI) in Scandinavian countries by comparing these countries in the European region. It is known that the Scandinavian countries belong to that part of the countries that have recognized the importance of involving ICT in education programs, which improves the economy of a certain country. Given this, the research reveals how ICTs play a key role in improving socio-economic development in Scandinavian countries.

The integration of new technologies and digitalisation causing significant changes in the skills demanded, leading to skills shortages and skills gaps in digital context. Undoubtedly, the employees’ digital skills and knowledge need to be aligned with the ongoing technological changes. This study obtains inputs from the employers from professional services sector regarding the demand for digital skills and the existence of gaps in digital skill among the employees. The impact of digital skills and willingness to pay for the micro-credential on the employability was investigate. 308 responses from the employers reside in Klang Valley, Johor and Penang collected via online survey. The five areas of digital skills adopted from Digital Competence 2.0, and the pair-sample t-test in SPSS was used to identify the present of skill gaps. Besides, PLS-SEM was used to test the hypotheses with regard to impacts of digital skills and micro credential on employability. The findings indicate that problem-solving and safety skills were ranked as highly demanded digital skills in the future. The skill gaps were found in all areas of digital skills except information and data literacy. The employers agreed that digital skills did affect their decision in hiring the graduate employees and they are willing to pay for micro-credentials to address the skills gaps. Yet, willingness to pay for micro-credentials did not affect the employability directly and indirectly. This study provides insights into the demand of digital skills and the digital skills gaps. Implications of the study from theoretical and practical perspectives are discussed.