The emergence of Artificial Intelligence (AI) and automation has raised significant challenges in today’s socio-economic environment. While these challenges affect individuals across age groups, the situation is critical for students transitioning from school to work. In an AI-driven labour market, digital skills and psychological resources may play a crucial role in employability. This study presents a systematic review aimed at examining the role of digital and psychological resources in achieving successful school-to-work transitions as reflected in employability indexes. Following the Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA) guidelines, Scopus, Web of Science, and ProQuest databases were searched for the relevant literature. Findings indicated that there is a scarcity of research that has addressed the impact of digital skills and psychological resources on employability in the AI context, with only 8 studies meeting the eligibility criteria. It was further revealed that the few research studies in the area have mostly adopted cross-sectional designs in exploring these relationships, limiting insights into long-term effects. Additionally, there were inconsistent results on the effects of digital skills and psychological resources on employability indexes. By bringing these gaps to the fore, the present review contributes to the ongoing discourse on employability in the digital age and calls for further research to address these inconsistencies while also using more rigorous and longitudinal research to better understand the evolving demands of AI-driven labour markets.

Keywords: Digital Skills, Psychological Resources, School-to-Work transition, Employability, Artificial Intelligence.