The Labor Market Outcome of Digital Platform

Abstract

This article analyzes how digital platforms, as the product of the rapid development of the Internet, will affect the employment of human society after they are gradually applied to various industries. This article starts with Google Trends, an Internet job search tool. By summarizing the literature related to Google Trends, we conclude that employment improved somewhat after Google Trends was added to the market. Moreover, Google Trends can also help economists predict the future employment situation from a macro perspective. We then analyzed what happened to a specific industry -- taxis -- after adding digital platforms. Despite the negative comments, we conclude that taxi-hailing platforms can help increase driver employment and will not replace the traditional taxi industry. Finally, the paper puts forward expectations for the future. The government must set more explicit rules to limit platforms and protect workers' rights in the labour market.