Labor market in transition to digital economy: the way to cope with the problem of developing the social and labor relations

Abstract

The world economy is undergoing a digital transformation, and it is happening at a tremendous rate. Today, the trend of digitization of various sectors of society is growing rapidly around the world. This process serves as a basis for the introduction of innovations and the improvement of the internal socio-economic situation. In this regard, many countries have begun to encourage and regulate the development of digital technologies in order to keep the positive effects and prevent negative consequences of transformation. With the emergence of the digital economy human and social capital are considered as key sources of welfare, that requires a conceptual shift in society, while the system of labor relations within such disruptive changes requires to be as responsive to changes as possible, from the positions of investments in human capital, adaptation to new conditions, and appropriate measures from the government. This paper outlines an approach proposed by the authors to represent the relations within the economic system of the labor market, wherein the model of labor relations can be defined as a set of relations between its subjects, with possibility to configure processes in appropriate/required way. Byassigning the components and levels for the system, along with defining specifications and/or attributes for model element, it is possible to explore complex relationships (processes, actions, etc.) within the system and evaluate the overall performance.