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Structural changes in the labor market under digital transformation

Year: 2026
Type: article
Abstract: The article examines the digital transformation of the Ukrainian labor market. It clarifies the concept by defining it as a systemic process of qualitative changes in the structure, functioning mechanisms, and interactions among labor market actors, driven by the adoption and diffusion of digital technologies. The study analyses how digital changes have been reflected in Ukraine’s strategic and regulatory documents. The study identifies a gradual broadening of the government’s approach to these issues, ranging from considering individual components of digital development to incorporating them comprehensively into national employment policy. This chapter synthesizes contemporary scholarly approaches to transformations in employment, work organization, occupational structure, regulatory mechanisms, and workforce requirements. The paper justifies systematizing digital changes in the labor market into six interrelated dimensions. The paper specifies the content of each dimension and shows that considering them together provides a comprehensive framework for characterizing government priorities for labor market development, regulatory mechanisms, the digital infrastructure that supports them, transformations in employment forms and occupational structure, and changing competency requirements for workers. The proposed systematization complements existing scholarly approaches to studying digital transformation in labor markets. It provides a theoretical foundation for identifying interrelationships among the distinguished dimensions, assessing the nature and intensity of the corresponding changes, and developing quantitative and qualitative indicators. The findings can support a comprehensive analysis of the labor market’s digital development, assess the nature and interrelationships of the identified changes, and identify priority areas for adaptation to technological transformations and evolving conditions of economic activity. Keywords: labor market, digital transformation, digital changes, digital development, employment, government regulation, digital infrastructure, occupational structure of employment, workforce competencies.
Language: English
Open Access status: bronze
OpenAlex ID: W7218929307
FWCI:
Cites: 8
Cited by:
Related to: 10