THEORETICAL ASPECTS OF TECHNOLOGY DEVELOPMENT AND TRANSFORMATION PROCESSES IN THE LABOUR MARKET

Анотація

The present research is directed towards the analysis of the relationship between technology, on the one hand, and economic development and the labour market, on the other. The research also focuses on characterising different approaches to determining the level of technology development in the economy. The investigation of the impact of technology on the economy and on the labour market as its component is relevant, because technology is the factor that causes the most debate in the modern world. Additionally, technological development is becoming increasingly dynamic, necessitating constant updating of theoretical approaches to analysis. These approaches may be employed in subsequent research endeavours. The following methodologies were employed in the analysis of the labour market and technological progress: analogies, abstraction, concretisation, the historical method, analysis and synthesis, comparison and grouping. The analysis of the impact of technology on economic development focused on five areas: production growth, economic growth, structural transformations in the economy (including employment), growth in household incomes, institutional changes and the reduction of negative environmental impact. It was found that technology has a positive impact on all factors except environmental impact. The positive impact of technology on all factors except environmental impact was substantiated. The efficacy of technological interventions in enhancing environmental quality is contingent upon their judicious implementation. Furthermore, the study has demonstrated a correlation between technological advancement and economic growth. The process of economic development enables the generation of resources by the economy, which can subsequently be allocated towards new initiatives and the acceleration of technological advancement. Furthermore, technological development has been demonstrated to be a contributing factor to economic development. The analysis of the mechanisms of labor market functioning includes the following: supply and demand, labor productivity, and government policy. The impact of technology on the labour market has been positive throughout history. The evidence suggests that they have contributed to productivity growth and the transition to lighter types of employment. However, in the contemporary era, technological advancements have the potential to diminish employment opportunities in the domain of intellectual labour, concomitantly generating roles that are characterised by a high degree of specialisation and a limited capacity for career progression. Consequently, further research into the impact of automation and AI on unemployment is pertinent, particularly in the context of developed and developing countries. The article also identifies approaches used to determine the level of technological development of the economy. The factors determining the technological level are as follows: human capital and skills, R&D investments, institutional development, international co-operation, infrastructure, corporate culture, and government policy. Furthermore, the study identified complex indicators and indices. This analysis facilitates the selection of the most effective combination of approaches for ranking economies by technology level, a prerequisite for subsequent research. Furthermore, the relationships identified in the study are a prerequisite for an empirical analysis of the impact of technology on the labour market.