The Influence of Digital Competencies on Employability: The Mediating Role of Digital Empowerment and the Moderating Effect of Socioeconomic Status

The rapid growth of the digital economy has reshaped employment trends, demanding new digital skill sets to thrive in the modern digital economy. The current study examines the impacts of three essential factors of the digital economy, i.e., Digital Marketing Literacy (DML), Access to Digital Platforms (ADP), and Digital Literacy Awareness (DLA), on the employability outcomes in Malaysia. Based on a multi-theoretical framework, the study investigates the mediating role of Digital Empowerment (DE) and the moderating effect of Socioeconomic Status (SES) on employability in Malaysia. A quantitative study with a cross-sectional design was employed to collect data from 400 participants either working in or seeking jobs across major states of Malaysia. The data was analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results reflected that all three factors, i.e., digital marketing literacy, digital platforms access, and digital literacy awareness, significantly increase employability. This effect occurs both directly and indirectly through digital empowerment. The findings also showed that the effectiveness of digital empowerment in enhancing employability is even greater among people with higher socioeconomic statuses, which reveals SES as a significant moderating factor. The results confirm the importance of digital skills and empowerment in developing employability, and the moderating impact of socioeconomic factors. This study contributes to theoretical knowledge on digital skills development, employment research, and digital inclusion policy. Besides, the study offers educators, policymakers, and organisations practical learning to improve employability through digital initiatives.