Analysing the Economic Impact of Automation on the Labour Market in Transition Economies

Abstract

The purpose of the article is to study the economic consequences of automation in the labour market in transition economies, to identify the key factors influencing this process, and to develop recommendations for adaptation to technological changes. Methods. The article uses comprehensive methods of analysis, synthesis and generalisation. The statistical analysis of the dynamics and structure of employment was applied, and regression models of the relationship between the level of automation and employment were built. The theoretical basis is the research carried out by domestic and foreign scholars. Results. The focus is on analysing the impact of automation on employment, productivity and labour market structure. It was found that in most sectors of the Ukrainian economy, there was a decline in employment, which was against the background of increasing labour productivity. Automation leads to a significant transformation of the employment structure, increasing the demand for more skilled labour. A weak positive correlation between the level of automation and total employment in the economies of different countries has been established. In transition economies, automation increases the risk of technological unemployment, especially in labour-intensive industries. At the same time, it creates opportunities for economic modernisation and increased productivity. The key problems are the inefficiency of labour market institutions and vocational education systems, which makes it difficult to retrain workers. Conclusions. The impact of automation on the labour market is ambiguous and depends on the level of development and structural characteristics of the economy. To minimise the negative consequences, it is necessary to develop differentiated adaptation strategies, taking into account the specifics of each industry. It is recommended that comprehensive strategies be developed that include modernisation of the education system, stimulation of job creation in high-tech sectors, and support for innovation and entrepreneurship. The results of the study can be used to improve state policy in the labour market and education in the context of the digital transformation of the economy. Investments in adaptation to automation and human capital development are necessary to ensure the long-term competitiveness of the economy.