THE IMPACT OF DIGITAL TRANSFORMATION ON THE LABOR MARKET

Abstract

The purpose of the article is to determine the impact of the digital economy on the changing structure of the labor market. The relevance of the article is explained by the importance of understanding the business environment soon, and what challenges employers and employees will face. The study was conducted based on the analysis and synthesis of reports from international organizations and institutions. The demand for new professions and skills, as well as the modification and displacement of traditional specialties, is identified. In the article, the impact of automation and integration of artificial intelligence on the transformation of production processes, changes in the employment model, and the formation of new approaches to the organization of work in the workplace are highlighted. It is determined that the share of human involvement in work is declining, and the phenomenon of combining human labor with artificial intelligence is becoming increasingly common. The need for continuous training of employees, improvement of their qualifications, and acquisition of new skills, including digital literacy, are substantiated. It is proved that successful adaptation to digital changes will determine the competitiveness of both individual employees or enterprises and entire economies. The features of digitalization and its importance for increasing the productivity of enterprises are summarized. The main driving forces in the labor market are identified, possible scenarios for the development of the working environment are analysed, and the vector of changes in professions and skills is established. The assessment of the impact of digital transformation on the labor market confirms the inevitability of a process that will require all labor market participants - employees, employers, and the state - to actively adapt and be ready for change. Investing in education and retraining of employees, promoting the development of their digital skills, introducing innovations, as well as flexible state policies to support entrepreneurship, are identified as key to ensuring the sustainable development of enterprises. The result of the study is the achievement of the set goal.