DIGITALIZATION OF THE ECONOMY: IMPACT ON THE STRUCTURE OF EMPLOYMENT AND THE EVOLUTION OF LABOR RELATIONS

Abstract

This article explores the impact of digitalization on employment structures and the evolution of labor relations. In the context of rapid advancements in information technologies and production automation, significant changes are occurring in the nature of work, professional skills, and the organization of work processes. Technological innovations are creating new job opportunities while simultaneously reducing the demand for traditional low-skilled professions. The study examines the trends of transitioning to remote and flexible employment, the development of online platforms, and virtual teams, highlighting the shift in the roles of employers and employees in the modern labor market. A particular focus is given to labor legislation and social guarantees in the context of digital transformations. The article also discusses the challenges faced by education systems and retraining processes due to the rise of new technologies. In addition, it emphasizes the need for legislative adaptation to the ongoing changes in the labor market. The analysis of these shifts presents an understanding of how digital technologies are reshaping the landscape of employment and labor relations, underlining the importance of both technological and social readiness to address these changes. The evolution of digital economy-driven employment models requires not only technological innovation but also a comprehensive policy framework that ensures labor market inclusivity, social protection, and equitable access to new job opportunities. The article highlights the dynamic nature of labor relations as they evolve in response to the growing prevalence of digital tools, automation, and remote work arrangements, calling for an updated approach to labor laws and workforce management. Furthermore, the impact of these changes on income distribution and job security is analyzed, pointing to the increasing necessity for social safety nets. The role of governments and private sector stakeholders in supporting this transition is also discussed. In particular, the article suggests that a collaborative effort is essential to mitigate the risks associated with job displacement and ensure the workforce is adequately prepared for the future. The findings emphasize the need for continuous adaptation of both the legal framework and workforce skills to meet the demands of the digital age, ensuring a sustainable, inclusive, and future-ready labor market.