This research project explores the diffusion and perception of digital technologies in the German labor market. We measure diffusion via information conveyed in online job vacancies and perception via media reports. Concentrating on emerging digital technologies, we stress both, their potentials, such as wage and employment growth, and pitfalls, such as inequality and biased narratives. Our analyses rely on novel text data, which we partially construct ourselves, and modern Machine Learning and NLP methods to analyze textual data. By combining our text data with survey and administrative information, we are able to shed light on the impact of digitalization on Germany’s labor market outcomes and educational decisions from different perspectives.