Implications of Technology Development on the Labor Market

Danijela Sokolic – University of Rijeka, Faculty of Economics and Business, Ivana Filipovica 4, 51000 Rijeka, Croatia

7th International Scientific-Business Conference – LIMEN 2021 – Leadership, Innovation, Management and Economics: Integrated Politics of Research – CONFERENCE PROCEEDINGS, Online/virtual, December 16, 2021, published by the Association of Economists and Managers of the Balkans, Belgrade; Printed by: SKRIPTA International, Belgrade, ISBN 978-86-80194-54-7, ISSN 2683-6149, DOI: https://doi.org/10.31410/LIMEN.2021

Abstract

The level of resources invested in STEM, innovation and R&D has never been higher, resulting in new technologies that are promising higher return rates and a new competitive edge. Technology development is influ­encing the way the work is performed, thus changing the structure of the organization, content of work and demand for workers` skills. Thus, tech­nology development changes industries, organizations and occupations. When occupations are displaced, many workers are forced to reconsider their possibilities at the labor market and to broaden their job perspectives by upgrading their skills portfolio. At the same time, due to the increase in production productivity, new products and services are offered, and new markets emerge. Thus, new jobs are instated and new skills for performing them are required. Technology development led by automation (including AI, ML, etc) and digitalization have found creative and efficient ways to change traditional business models, not necessarily through resource inter­nalization and standard employment agreements. This paper is elaborating on the concept of job and employment, and the effect technology advance­ments have on labor markets. Findings are related to newly emerging forms of employment and their implications for organizations and workers.

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