DIGITAL ECONOMY: IMPACT ON THE SOCIO-ECONOMIC TRANSFORMATION

Abstract

Globalization is expanding the scope of employment forms in the labour market. The digital transformation of production effects both the Economy and Employment. The production processes automation requires constant updating of knowledge and increasing the competence of employees, high readiness to adapt to new conditions and mechanisms for the formation of Social and Labour relations. Such changes affect the functioning of society, contribute to the establishment of a new level of quality of life, when people’s priorities are changed, the needs for self-realization and intellectual development become a priority by increasing the educational level, qualifications, and improving their own skills and competencies. The purpose of the paper is to analyze, define and characterize the impact of digital technologies on the labor market. Digital technologies as well as digital services change the rules of employment and the requirements of competences, knowledge, skills and attitudes of employees. Beginning to promote online work platforms, changing local and global labor markets. Methodology of the study is based on Data Mining tools as a methodology and process for identifying large data sets that accumulate on various information resources. Results of the survey showed that technological changes, on the one hand, can lead to job displacement and technological unemployment, and on the other hand, increase worker efficiency and increase their wages. These two trends are not necessarily mutually exclusive. With the advent of the digital platforms, some professions are being automated and others are being reorganized. This has led to the emergence of alternative operating mechanisms, in particular the "Gig economy" or Concert economy. Gig economy is a labour relations model based on the short-term contracts or informal agreements (Uber, Lyft, TaskRabbit, GrubHub, Postmates). Practical implications. The formation of a global digital segment of the labour market is accompanied by economic and social contradictions, which are especially acute in institutionally underdeveloped countries. This situation requires strengthening the state socio-economic development policy in the direction of balancing the processes of transformation of the national labour market and the formation of the digital economy Value/originality. The shift to a digital economy is a natural process and requires modernization of the employment sector. The new COVID-19 pandemic has accelerated the processes of transformation of the labour market and acted as a catalyst. Due to the fact that most enterprises and government organizations switched to a remote format, employees had to master computer and digital technologies.