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DIGITALIZATION OF THE ECONOMY AND EMPLOYMENT PROBLEMS
Bustonov Mansurjon Mardonakulovich
Professor of Namangan Institute of Engineering and Technology,
Doctor of Economics,
Email:
Abstract:
The article discusses the place of the digital economy in the formation of new types
of specialization, as well as new jobs.
Key words:
digital economy, unemployment, labor force, information and communication
system (ICT), digital services.
INTRODUCTION.
Technological progress and globalization processes naturally contribute to the emergence of
new forms of labor force use, such as contingent working, that is, non-permanent employment
[1]. By this we mean such forms of labor that make the basic principle of personnel policy a
diverse and very flexible deployment of the workforce. Already, the structures of labor
collectives of some companies are formed in the form of three concentric circles.
Local institutions are also forced to adapt to globalization processes; many countries have
partially liberalized their labor laws, which in turn have a direct impact on the functioning of
the labor market. Globalization and information technologies increase the level of competition,
on the one hand, on the other hand, they enhance the competitive advantages of individuals
with a good education, a high level of professionalism, talent, responsibility and willingness to
solve non-standard tasks.
The carriers of human capital received a new level of freedom and opportunities for self-
realization, and employers received access to the intellectual resources of the whole world. The
digital labor market contributes to the formation of innovative employment. As a result of
structural changes in the economy, the share of traditional industry, which formed the demand
for standard employment, is decreasing. There is a growing service sector operating under
conditions of flexible working hours, with longer or shorter working hours than provided for by
current legislation.
Labor shortages in rapidly aging economies will create an urgent need for automation and
increased productivity. The role of women in the economy is growing and childhood patterns
are changing, which defines a new social landscape. In modern psychology and pedagogy, there
is a trend towards a transition from the perception of childhood as a period of formation,
preparation for "real adult life" to the perception of this period of life as an intrinsic value,
having significance "here and now"[2]. As a result of demographic trends, 40 million people are
replenished annually in the labor market, which means that in the period up to 2030. more than
600 million new jobs will need to be created in the global economy.
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
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These jobs are more likely than ever to be created in the service sector, which today accounts
for about 49% of all employed persons in the world, compared to 29% in agriculture and 22%
in industry. These workers will have to financially support an increasing number of older
people, with the share of the world population over 65 years of age increasing from 8% now to
14% by 2040. [3]. There is a growing need for greater mobility of labor resources, which leads
to the strengthening of the role of a fixed-term employment contract. It is globalization and the
reduction of the ability of the global economy to create a sufficient number of new jobs.
Researchers call the main reason for the emergence of non-standard in the organization of
employment. [4]. For example, the 2013 World Bank Report shows that the total annual rates of
job creation range from 10% to 18%, and the elimination - from 10% to 15%. [5].
The ILO report "Working for a better future" emphasizes that during the transition period, the
least prepared older people will be at risk of losing their jobs.
Almost 50% of companies predict that by 2022. automation will reduce the number of full-time
workers.
Table 1
Likely degree of impact of trends on the creation, transformation or disappearance of jobs
Trend
The emergence
of new
work places
Transformation
work places
Disappearance of
workers
places
Digitalization
high
high
average
Automation
short
high
high
Globalization
average
average
average
technologies
high
average
average
Greening
average
average
short
network
high
short
Influences almost
There is a migration of factors of production in general. In the process of globalization, the
chain of value added creation is broken, and creation is distributed all over the world. The
global merging of markets leads to increased competition for labor and wages. The transition to
a new post-industrial society, a knowledge economy, a global world, informatization has led to
the emergence and growth of atypical employment models characterized by such features as
autonomization, de-standardization, virtualization of labor relations, a decrease in the share of
physical labor and an increase in the role of services.
Today, atypical forms of employment cover the mass strata of workers. Engaging casual
workers allows organizations to save on office space and support staff, reduce absenteeism and
increase efficiency, and significantly expand the scope of the search for new employees,
allowing you to attract specialists from anywhere in the world.
Today, the COVID-19 pandemic has added to the above factors, which contributed to the
spread of remote employment, incl. part-time remote employment. Taking into account the
above trends, the economy of the future is expected to undergo significant changes, involving
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
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an increase in tension, as well as the emergence of both fundamentally new and stagnant
segments of the economy.
The digital labor market is characterized by a high level of flexibility, which is associated with
an almost unlimited level of labor mobility. At the same time, the main feature of the mobility
of this segment of the labor market is its virtuality. That is, the movement of labor occurs
without its physical movement from one point of the world to another. Specialists single out the
formation of a new type of mobility - digital, which occurs without the physical movement of
the workforce, which to a large extent allows the employer to reduce the cost of maintaining it.
Globalization and information technologies increase the level of competition, on the one hand,
on the other hand, they enhance the competitive advantages of individuals with a quality
education, a high level of professionalism, talent, responsibility and willingness to solve non-
standard tasks. In the digital labor market, intellectual work is becoming the most in demand,
which is associated with the specifics of the services provided. The carriers of human capital
received a new level of freedom and opportunities for self-realization, and employers received
access to the intellectual resources of the whole world. The digital labor market contributes to
the formation of innovative employment.
The carriers of innovative human capital are individuals who constantly improve their
knowledge, professional skills and use them to produce innovations in any field of activity
using ICT. The digital space is being actively developed, first of all, by economically active
youth. Data from a report by the US Bureau of Labor Statistics show that the demographic
structure of those employed in the digital segment is dominated by those aged 16 to 35, they
make up 50% of the total number of employed in this segment.
The main customers of labor services in the virtual labor market are innovative global
companies and young fast-growing companies. The digital labor market is characterized by a
high level of dynamism. There are four models of labor market dynamics depending on the
ratio of factors: the intensity of labor force recovery (high, low "[7].) and the intensity of job
recovery (high, low): • a model with high labor turnover, when the labor market demonstrates
the ability to the rapid renewal of the structure of jobs.
Fig.1. The age structure of employed in the US in the digital sector, compared with the
traditional sphere.
[6]
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
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Models correspond where the innovative human capital is concentrated, which is engaged in the
production of innovations, research and scientific development. Labor services in this market
segment are characterized by a high level of intelligence, and the result depends on the
individual's ability to innovate, work with dynamic information flows, and make non-standard
decisions.
REFERENCES:
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https://www.hcmworks.com/blog/what-isa-contingent-worker
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https://www.gigeconomydata.org/basics/who-participates-gig-economy
.
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INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 06,2025
Journal:
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14. Bustonov M.M. The firm aspects and conditions providing the qualities of economic
growth in Uzbekistan. International Journal of Economic Theory and Application. 2017/
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