From Digital Competencies to Job Market Readiness: The Mediating Role of Employability Competencies and the Moderating Role of Labor Market Dynamism

Rapid technological changes and evolving labor market demands have increased the importance of identifying the competencies required for successful workforce participation. This study examines how digital competencies (DC) contribute to job market readiness (JMR) among university students and recent graduates in Saudi Arabia by investigating the mediating role of employability competencies (EC) and the moderating role of labor market dynamism (LMD). Drawing on Human Capital Theory and Career Construction Theory, the study develops an integrated framework explaining how individual competencies and labor market conditions jointly shape workforce preparedness. Data were collected using a stratified random sampling approach from 400 participants (248 final-year university students and 152 recent graduates) recruited from universities in Riyadh, Jeddah, Dammam, Medina, and Yanbu using a structured questionnaire. The hypotheses were tested using regression analysis and Hayes’ PROCESS macro, while confirmatory factor analysis was conducted using AMOS 27. The results indicate that DC positively influences both EC and JMR. EC also positively affected JMR and partially mediated the relationship between DC and JMR. Furthermore, LMD significantly strengthened the positive effect of DC on JMR, suggesting that digital competencies are becoming increasingly valuable in dynamic employment environments. This study contributes to the workforce preparedness literature by providing a more comprehensive explanation of how digital competencies are associated with job market readiness through employability competencies and identifying labor market dynamism as a contextual condition associated with the strength of this relationship. The findings offer implications for universities, policymakers, and students seeking to enhance employability outcomes and align workforce development initiatives with Saudi Arabia’s Vision 2030.