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The impact of digitalization on labour market

Written by D. Gurkina

Paper category

Bachelor Thesis


Business Administration>General




Bachelor Thesis: Digitization Digitization is "the continuous adoption of digital technology in all possible social and human activities" (Clerck). In the business world, digitalization can be described as "using digital technologies to change business models and provide new revenue and value creation opportunities" (Gartner). A. Digital Revolution The digitization of information and communication processes has led to the explosive growth of information (also known as "big data"), and has promoted the computerization of production, service delivery and even the private sector (Walwei, 2016, p.2). Going back to the beginning of the first industrial revolution and the second industrial revolution 20 years ago, “the global economy has been on a stepped growth track driven by a series of technological advances. Steam engines have replaced water mills, and telephones, cars, Airplanes, transistors, computers, and finally the Internet "Every new wave of technology has brought about a surge in productivity and economic growth, providing effective new methods for performing existing tasks, and giving rise to entirely new types of business" (Manyika, Chui, Bughin, Dobbs, Bisson & Marrs, 2013, p. 23). However, 1965 can indeed be called the prerequisite year for the digital revolution and technological development. Intel co-founder Gordon Moore observed that “as transistors change The number of transistors suitable for integrated circuits is increasing exponentially” (Atkinson and Castro, 2008, p. 7), so “the number of transistors placed on an integrated circuit is one square inch of integrated circuit The chip doubles every two years” (Investopedia, 2015). After some small configurations, Gordon Moore’s prediction is considered a law called “Moore’s Law.” Technology development or people’s right The adoption of technological innovation and its penetration into the market began to be very unstable. Back in the 1980s to the 1990s, mobile phones were regarded as luxury goods, and even as toys, rather than inaccessible in daily life for more than half of the world’s people The missing part (Raja, Ampah, 2016, p.1). In fact, nowadays, people cannot imagine a typical day without using mobile phones for social media, messaging, incoming and outgoing calls, and surfing the Internet. Moore’s Law further leads to “performance Steady improvement” (Walwei, 2016, p. 2), and make possible the production of computers, the Internet, and mobile phones in the future. The further digitization of information has led to the emergence of the so-called “big data” concept and led to “machine learning, Advances in fields such as artificial intelligence and mobile robots” (Walwei, 2016, p. 2). Coupled with the high availability of big data, it has further led to the computerization of the economy. Therefore, digitization has promoted the progress of economic and technological development, and Improve overall productivity, especially labor productivity. III. The labor market "Men and women of today and tomorrow who are taught to rely on certainty will have to observe the further development of the world around them and live in a complex and uncertain world. They need to develop their innovative abilities and adapt Change and management instability” (Preda, 2002, p. 80). In fact, when it comes to today's labor market, this sentence is correct. There are many factors that affect the future performance of the labor market. The following are the four factors considered to be critical. They are "population development, national economic competitiveness, globalization, and last but not least technological change or digitization." (Walwei, 2016, p. 2). Let us understand these factors in more detail and focus on the last factor, technological change. Population development determines the level of labor. The competitiveness of the national economy means that creation and institutional settings will protect property rights, provide support for structural changes, and “provide effective education, training, and social security systems (Walwei, 2016, p. 2). In turn, globalization is Factors that enable countries to specialize the goods and services in which their country has a comparative advantage, and allow to demonstrate the potential of specific skills and stimulate the "influence of their specific skills" (Walwei, 2016, p. 2)). Technological change special order People are interested because this is considered the main factor in the list of four factors. It is a key determinant of economic growth and productivity (Walwei, 2016, p. 2). Artificial intelligence, self-driving cars, big data Analysis and cloud, custom manufacturing and 3D printing, Internet of Things (IOT) and connected devices, robots and drones, social media and platforms, etc. "are fundamentally changing the outlook for the types of jobs that will be needed in the future, and how these jobs are done , Location, and people” (Organization of Eastern Caribbean States, 2016). Such a major and large-scale explosion of digital technology continues to spark debate about the impact of technology on the labor market, whether it be as an opportunity to create a large number of new jobs in the market or It. The impact of digitalization varies from country to country, from industry to industry, and uneven. (Sabbagh, Friedrich, El-Darwiche, Singh, Koster, 2013, p. 35). Digital transformation brings opportunities and threats to the labor market . It has positive and negative effects on the labor market. Digitalization affects 3 things: job creation and reduction, expectations for the skills needed for "future jobs", and the education system and labor market for these requirements and changing jobs How conditions respond (European Parliament, 2016, p. 6). Read Less