Kanan A.R.
Kanan A.R. THE IMPACT OF DIGITAL TECHNOLOGIES ON VARIOUS ASPECTS OF THE ECONOMY, INCLUDING EMPLOYMENT, PRODUCTIVITY AND CONSUMER BEHAVIOR // Universum: экономика и юриспруденция : электрон. научн. журн. 2024. 4(114). URL: (дата обращения: 17.06.2024).
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This article explores the profound impact of digital technologies on various aspects of the economy, including employment, productivity, and consumer behavior. The discussion extends to the realm of productivity, highlighting how smart management systems, cloud computing, and data analytics contribute to process optimization, cost reduction, and informed decision-making. The article also examines the evolving landscape of consumer behavior, driven by e-commerce, online banking, social media, and personalized recommendations, fostering competition and elevating the quality of products and services. Additionally, it addresses the challenges in cybersecurity that accompany the digital revolution, emphasizing the importance of safeguarding data privacy and countering cyber threats. The changing dynamics of education and training, facilitated by digital platforms, are also explored, showcasing the increased accessibility of knowledge and its positive impact on workforce skills. In conclusion, the article recognizes digital technologies as a driving force in the modern economy, revolutionizing societal aspects while emphasizing the need for a balanced approach to innovation and the preservation of social and economic stability.


В этой статье исследуется глубокое влияние цифровых технологий на различные аспекты экономики, включая занятость, производительность и поведение потребителей. Обсуждение распространяется на сферу производительности, подчеркивая, как интеллектуальные системы управления, облачные вычисления и анализ данных способствуют оптимизации процессов, снижению затрат и принятию обоснованных решений. В статье также рассматривается меняющаяся ситуация в поведении потребителей, обусловленная электронной коммерцией, онлайн-банкингом, социальными сетями и персонализированными рекомендациями, способствующая конкуренции и повышающая качество продуктов и услуг. Кроме того, в нем рассматриваются проблемы кибербезопасности, сопровождающие цифровую революцию, подчеркивая важность защиты конфиденциальности данных и противодействия киберугрозам. Также исследуется меняющаяся динамика образования и профессиональной подготовки, чему способствуют цифровые платформы, демонстрируя растущую доступность знаний и их положительное влияние на навыки рабочей силы. В заключение в статье признаются цифровые технологии в качестве движущей силы современной экономики, революционизирующей социальные аспекты, подчеркивая при этом необходимость сбалансированного подхода к инновациям и сохранения социальной и экономической стабильности.


Keywords: digital technologies, economy, employment, productivity, consumer behavior, innovation.

Ключевые слова: цифровые технологии, экономика, занятость, производительность, потребительское поведение, инновации.



In the modern world, digital technologies play a key role in transforming the economic landscape. Every year, new innovations change the way we produce, interact with labor markets and consumer behavior. In this article, we look at the impact of digital technologies on various aspects of the economy, such as employment, productivity and consumer behavior.

Modern challenges of globalization, the transition from an industrial to a networked digital economy, new speeds in business, mobility and transparency - the upcoming digital revolution certainly requires a revision of the business paradigm - the transformation of a traditional company into a technological one. To ensure success in the face of rapid change in the digital age, the rules of business are changing - management models that ensure productivity, innovation, flexibility and adaptability are entering into competition. However, human resources are still the foundation of sustainability - the philosophy of agile companies requires new competencies: on the one hand, awareness of future consumer demands and active adaptation of products/services to these requests, and on the other hand, attracting talented professionals, satisfying their sometimes unpredictable requests and unlocking potential [1, p. 19].

Benchmarking is becoming a prerequisite for competitiveness: by 2025, 85% of companies will be digital; already today, a cluster of companies doing business only online is actively developing; scientists predict changes in the world of work for the next 20 years similar to changes in the past 2000 years thanks to the new technological revolution; business and HR strategies are undergoing a digital transformation, the consequences of which are determined by only 20% of paper-based document management; companies creating products and services for the digital world are gaining momentum [6, p. 42].

Digital Transformation: Shaping the Economic Landscape

In the rapidly evolving landscape of the 21st century, digital technologies have emerged as transformative forces, revolutionizing various facets of the economy. When exploring the profound impact of digital technologies on different aspects of the economy and analyzing the key areas where their influence is most significant, the following should be considered:

Digital Disruption in the Workforce

One of the most prominent impacts of digital technologies is observed in the workforce. Automation, artificial intelligence, and advanced robotics are reshaping traditional job roles. While some jobs are automated, new opportunities emerge in areas such as data science, cybersecurity, and technology development. The workforce undergoes a shift, emphasizing adaptability and a continuous learning mindset.

Under the influence of information and computer technologies, a new digital segment is being formed in the global labor market. Its features are digital employment, digital social and labor relations, digital infrastructure. At the same time, national economies are faced with unemployment problems. The introduction of digital technologies into the workplace transforms the demand for labor and causes an increase in unemployment, primarily due to the slowness of the labor market, in particular its institutional structure. At the same time, due to the use of digital new forms of employment, it is possible to reduce the unemployment rate in the global labor market. The modern global labor market is undergoing transformation, due to the active introduction of digital technologies into the workplace, the formation of digital infrastructure and the movement of its subjects to the virtual space. This predetermines structural changes in the global labor market [9, p. 167].

Firstly, the digital segment of the labor market is being formed and is constantly growing. This segment is characterized by the transfer of information space jobs; establishment of atypical labor agreements for the performance of digital work; the use of a flexible, including amorphous, work schedule or a work schedule based on trust; digitalization of the labor process. “Digitalization” translated from English means “digitization,” that is, transferring information into a digital format. The term “digitalization” is most often used to characterize social, economic, cultural and other processes and their transformation under the influence of information globalization [4].

The main functions of information globalization are integral, transformational and communicative. The integral function ensures the unification of the potentials of world development, and the transformational one causes changes in the method of production. Transformation of the production method ensures the formation of a digital segment of the global labor market.

Secondly, the supply of labor in the digital segment of the global labor market is increasing, as more workers from different countries can join it. Workers from developing countries compete with applicants from developed countries. In addition, the former may agree to a lower level of remuneration. An example would be the IT industry, in which digital technologies are created, and, therefore, this industry is the most integrated into the global networked digital space. According to data from the International Labour Organization (ILO) and the Organisation for Economic Co-operation and Development (OECD), the Information Technology and Digital Communication sector has witnessed significant growth in job roles. Among the top 100 jobs on the rise, Technology and IT-related positions claim the third-highest share, with 16 roles. Sales Growth and Customer Engagement roles lead the list, constituting 22 out of the 100 positions. Roles such as Sales Development Representatives, Director of Growth, and Customer Success Engineer feature prominently in this category, indicating a growing emphasis on expanding customer bases and adopting innovative growth models in a world marked by increasing digital access and rapid technological advancements. Human Resources and Talent Acquisition roles emerge as the second most popular category. The majority of these roles are associated with Talent Acquisition and Recruitment, including a distinct focus on Information Technology Recruitment. This trend may highlight the growing challenges and significance of securing skilled talent in a generally robust labor market. The data underscores the dynamic shifts in job demand, reflecting the evolving landscape shaped by digital accessibility and the constant advancement of technology [14].

There is a digitalization of social and labor relations between subjects of the labor market. That is, the coordination of agreements between the employer and employee takes place in the digital space using digital technologies. In addition, in many cases the state as a subject of regulation of such relations falls out of social and labor relations. Therefore, several aspects should be paid attention to. One of them is the low level of regulation of the digital global labor market. Another is the presence of global market entities from different countries, which have various national norms and rules for regulating social and labor relations. And another is a significant number of order executors from developing countries and has a “shadow sector” in the structure of the economy.

The digitalization of the economy has undoubtedly brought about significant advancements and improvements in efficiency, but it has also led to the phenomenon of technological unemployment. This refers to the situation where workers lose their jobs as a direct result of the replacement of their roles by digital technologies and automation. This widespread technological unemployment poses various challenges and considerations in the evolving landscape of work and employment as following:

  • Automation and Job Displacement

As businesses increasingly adopt automation and artificial intelligence, routine and repetitive tasks are automated, leading to a reduction in demand for certain jobs. Industries such as manufacturing, customer service, and transportation are particularly susceptible to automation-related job displacement.

  • Skill Mismatch

The shift towards a digitalized economy often requires workers to possess new and advanced skills to remain employable. There may be a growing gap between the skills demanded by the evolving job market and the skills possessed by displaced workers, leading to unemployment or underemployment.

  • Reskilling and Upskilling Imperative

To address technological unemployment, there is an urgent need for comprehensive reskilling and upskilling programs to equip the workforce with the skills relevant to emerging technologies. Governments, businesses, and educational institutions play a crucial role in facilitating these programs to ensure a smooth transition for workers.

  • Social and Economic Disparities

Technological unemployment may exacerbate existing social and economic disparities, as certain demographics may face greater challenges in adapting to the digital economy. Income inequality and the digital divide could widen if measures are not taken to address these disparities.

  • Job Creation in Emerging Sectors

While certain jobs may be displaced, the digital economy also creates new opportunities in emerging sectors. Encouraging innovation and entrepreneurship can contribute to the creation of jobs in fields such as data science, cybersecurity, and digital marketing.

Implementing a digital workplace comes with various advantages and challenges (Table 1).

Table 1.

Pros and Cons of Digital Workplace



Enhanced Collaboration

Digital tools facilitate real-time collaboration among geographically dispersed teams, leading to increased productivity and efficiency.

Security Concerns

The increased reliance on digital tools raises cybersecurity risks, including data breaches, hacking, and other security threats.

Flexibility and Remote Work

Digital workplaces enable flexible work arrangements, allowing employees to work remotely, fostering work-life balance, and attracting a diverse talent pool.

Resistance to Change

Employees may resist adopting new digital tools, leading to challenges in implementation and a potential decline in productivity during the transition period.

Improved Communication

Digital communication tools, such as instant messaging and video conferencing, enhance communication efficiency and connectivity among team members.

Technical Issues

Technical glitches, system downtimes, or software compatibility issues can disrupt workflow and cause frustration among employees.

Increased Productivity

Automation and digital tools streamline processes, reduce manual tasks, and contribute to overall productivity gains.

Digital Divide

Not all employees may have equal access to digital tools, potentially creating a digital divide and impacting collaboration.

Access to Information

Digital workplaces provide easy access to information, promoting knowledge sharing and empowering employees to make informed decisions.

Information Overload

The constant flow of information through various digital channels may lead to information overload, making it challenging for employees to prioritize tasks.

Innovation and Agility

Digital platforms foster innovation by providing a collaborative environment for idea-sharing and rapid adaptation to market changes.

Loss of Personal Interaction

Heavy reliance on digital communication may lead to a decrease in face-to-face interactions, impacting team dynamics and employee relationships.

Cost Savings

Reduced reliance on physical infrastructure and increased operational efficiency can lead to cost savings in the long run.

Skill Gaps

Implementing new digital technologies may reveal skill gaps among employees, necessitating significant investments in training and development.

Employee Empowerment

Employees have access to self-service tools, enabling them to manage their tasks, training, and development.

Dependency on Technology

Overreliance on digital tools may result in a loss of manual skills and a decreased ability to perform tasks without technological assistance.

Source: Author’s Own based on the articles summary and internet research.


While a digital workplace offers numerous benefits, organizations must carefully manage the challenges associated with implementation to ensure a smooth transition and maximize the advantages of a technologically advanced work environment.

Enhancing Productivity through Innovation

Digital technologies significantly contribute to boosting productivity across industries. Cloud computing, data analytics, and smart technologies streamline processes, optimize resource allocation, and improve overall efficiency. Businesses leveraging these innovations gain a competitive edge, demonstrating the importance of embracing digital transformation for sustainable growth [2].

The innovation process (at the stage of generating an innovative idea) is always accompanied and, moreover, conditioned by the creative activity of the innovator. And the only tool for organizing such activities is motivation. According to the definition of X.T. Graham and R. Bennett, “motivation is a set of motivations, influences and incentives - conscious and unconscious, which cause the employee to strive to achieve certain goals.” A person cannot be forced or forced to carry out innovative activities. The desire to give birth to innovation can arise in an employee only due to certain internal convictions, perhaps also in some indirect way, imposed from the outside. Consequently, the task of innovation management is to create an incentive for employees to work creatively and to ensure a special innovative climate in the company. The motivation tools used by companies include the following [5, p. 90]:

- a system of traditional (monthly wages, allowances, bonuses, social package) and non-traditional (bonuses, gifts based on the results of the financial year) compensation. Thus, the traditional form of remuneration, which provides for daily recording of an employee’s working time, can limit the latter’s labor productivity, since the volume of his daily output does not differentiate the amount of income received for labor. In this regard, some companies use a stepped wage system. The essence of this approach is to determine several levels of labor productivity and the appropriate level of payment for each level. An employee has the right to choose at his own discretion the level of performance that best suits his capabilities. At the same time, its compliance with this level is regularly checked. An employee may also wish to be promoted to a higher level of performance with increased pay if he believes he can perform at that higher level. The advantage of this method is the competent combination of a system of constant remuneration of the employee with his desire for development or, at least, to increase labor productivity in order to obtain greater income;

- planning an employee’s career (formation of a personnel reserve, organization of training, linear personnel movements of employees). Headhunting or executive search technology has recently become unconventional, but very effective, and is one of the functions of personnel management aimed at to search and attract new employees to work in the company, as a rule, with rare specialties and, in connection with this, already employed in competing companies. The work of “headhunters” pursues the same goals as the activities of regular personnel selection services; however, it has a narrower profile and has a number of advantages [11, p. 172]:

1. “Headhunters” are aimed at finding a person not with any profession or qualification, but with unique knowledge and intellectual capital, which should subsequently bring profit to the company and recoup the usually large financial resources spent on such an employee. As a result, the company receives an employee with a set of those professional skills, personal qualities and accumulated knowledge that it requires to fill a vacant position;

2. In the context of recent active discussion of the need to take measures to tighten national labor legislation aimed at limiting discrimination by gender, age and other criteria not related to the professional qualities of candidates in employment, “headhunting” allows you to bypass such legislative restrictions;

3. Often, senior managers, who highly value their intellectual capital and are aimed at its most profitable use, themselves achieve interest in them from “headhunters”. Thus, the subject and object of the brain hunt find each other, satisfying the goals of both.

Innovation activity today has become a universal variable, the value of which in production, business or science determines in the long term the competitiveness of the product being manufactured, the success of a business process or the fate of a scientific discovery. HR management is no exception, designed to keep up with the times to manage such an important resource of the company as its personnel.

Revolutionizing Consumer Behavior

The rise of e-commerce, social media, and personalized digital experiences has fundamentally altered consumer behavior. Consumers now have access to a wealth of information, enabling them to make informed decisions. Businesses must adapt to the digital expectations of consumers, providing seamless online experiences, personalized services, and efficient digital transactions.

Rapid changes in technology and the environment (biosphere and noosphere) lead to a revolutionary transformation of consumer behavior, which is expressed in several key trends [12, p. 101]. Some of them are provided below:

1. Growing consumer commitment to a healthy lifestyle (HLS). According to research by the Coca-Cola Company, 84% of Russian consumers are thinking about a healthy lifestyle and switching to the consumption of dietary products, changing their diet towards natural eco-products. For 77% of consumers, the composition of products and the naturalness of the ingredients from which they are made are very important [11].

2. Rapid digitalization of consumer behavior. This trend is one of the obvious ones, but it always surprises with its versatility and the spread of influence on all spheres of life with deep transformational consequences. The trend is supported by the further spread of Internet and other digital technologies around the world.

3. Demand for live communication, socialization and belonging. Despite the trend of digitalization of consumer behavior, as an alternative trend, the demand for live communication, socialization and a sense of involvement in certain events (people, brands) is growing. For example, Evgeny Kapyev, general director of the EKSMO publishing group, cited statistics according to which people buy more books on the Internet, but more and more readers - up to 5 thousand people come to live meetings with authors [8].

4. Demand for meaning and personal development. Already in the 60s, the famous American economist J. Galbraith said that the physiological needs of the population were completely satisfied. According to Maslow’s pyramid, the next level of needs is the need for security (which we already talked about as a trend above), then the need for socialization (communication, friendship, love, family, etc.), which was also noted, and finally, the need for self-actualization and development. Personal development and growth is one of the brightest trends of the last two decades. This trend is expressed in the fact that people think more about the meaning of life; attend all kinds of trainings and seminars that develop not only personality, but also the hidden abilities of a person [12, p. 105].

5. Transformation of channels for obtaining information and personalization of information. The volume of information consumed by a person is constantly growing, but it is being personalized. This happens by reducing the number of sources of information used by one person, as people try to protect themselves from a huge amount of fake (false) information and unverified facts. People select sources of information that they trust, often these are alternative media sources.

6. Personalization of consumption and the rise of the prosumer. Personalization of consumption is another bright trend of the last two decades that is gaining momentum. Personalization of consumption occurs in conjunction with an increase in the involvement (interest) of consumers in some area of life and consumption and, as a rule, is accompanied by an increase in income.

As it can be seen, if the consumer of the future is described, he is an active person who prefers a healthy lifestyle, is fluent in digital technologies and prefers to automate the entire routine associated with operations that are uninteresting or of little importance to him as an individual. At the same time, he wants to communicate and is looking for interesting events for this, where he can meet like-minded people and opinion leaders. He is educated and ready to constantly improve his skills through distance learning courses. He forms his own unique ecosystem, limiting it primarily to certain sources and channels of information, based on his consumer experience. Having abandoned standard mass products, he is ready to act as a prosumer and independently participate in the production of products that are important to him.

Cybersecurity Challenges in the Digital Era

As the economy becomes increasingly digitized, the importance of cybersecurity cannot be overstated. The prevalence of digital transactions and the interconnected nature of businesses make them susceptible to cyber threats. Protecting sensitive data and ensuring the integrity of digital systems become paramount, requiring continuous investment in robust cybersecurity measures (Figure 1).


Figure 1. The Future of Cybersecurity

 (Source: BBVOpenMind)


Cybersecurity refers to the practice of protecting computer systems, networks, and digital data from unauthorized access, attacks, and damage. It involves implementing measures to ensure the confidentiality, integrity, and availability of information in the face of evolving cyber threats.

On April 13, 2023, a round table “Current issues of personal data protection and cybersecurity in the digital era” was held at the Institute of Philosophy and Law of the Novosibirsk National Research State University. Representatives of leading higher educational institutions of Siberia took part in its work. The round table discussed a wide range of problems related to the complexities of interpretation and application of legislation on the protection of personal data and ensuring security in cyberspace. Particular attention was paid to the influence of modern achievements of science and technology, as well as the widespread use of digital technologies, on these processes [3].

Director of the Institute of Philosophy and Law of NSU, Doctor of Philosophy, Professor Vladimir Serafimovich Diev emphasized that the protection of personal data has become one of the pressing problems for research in various branches of science. He noted that in the 21st century, people are aware of the guarantee of their rights and their inviolability, since the result of social progress has been the expansion of the number of fundamental human rights and freedoms and the specification of their content, the recognition of human rights at the international level, and the assignment of responsibilities to the state to ensure and protect them. The round table program, in his opinion, allows us to consider the issue of personal data protection through the prism of the interaction of national values, the specifics of the legal regulation of these relations by various branches of law, and the development of new technologies. The constructive work of the round table participants will give new impetus to the further development of the theory and practice of personal data protection [3].

Reshaping Education for a Digital Future

Digital technologies have revolutionized the education sector, offering online courses, virtual classrooms, and interactive learning platforms. The accessibility of information has empowered individuals to upskill and reskill, fostering a more adaptable and dynamic workforce. The evolving demands of the digital economy underscore the necessity of ongoing education and training.

The study of the phenomenological features of the digital generation in the context of the problem of vocational education and forecasting the professional future was carried out through a qualitative phenomenological method, supplemented by theoretical and methodological analysis of scientific literature, synthesis, specification, comparison and generalization. The method of summarizing scientific literature is aimed at understanding this generation from various points of view, at obtaining qualitative characteristics of the phenomenon under study. With all the complexity and heterogeneity, as well as the subjectivity of professional plans in the models used in the studies, they acquire a certain integrity, unity, since it structures not individual phenomena and objects, but certain loci of the educational and social space that are of the greatest value to the subject. The dynamic movement of the individual from events, such as school life, to the present, and from the present to the future, forms a complex interrelation of events of the past, present and future. The identified personal and behavioral characteristics of the modern generation showed that its representatives are in a state of alienation from real society, have difficulties in communication, in determining their life path. But, as the most receptive and dynamically responding to all changes part of society, modern youth has certain resources: mobility, multitasking, flexibility of thinking, activity. The manifestation of these characteristics can significantly affect the character of society in the future if they are managed correctly. There is a need to help representatives of the digital generation develop the ability to predict their future, fill the future with optimistic meaning, including professional ones, change the fatalistic attitudes of girls and boys regarding their future, and skillfully distribute available resources taking into account the changing digital space [13].

The influence of digital technologies on the economy is multi-faceted. From transforming the nature of work to revolutionizing consumer interactions, enhancing productivity, and presenting new challenges in cybersecurity, the digital era has ushered in a new economic paradigm. Embracing these technologies is not just a choice but a necessity for businesses and individuals looking to thrive in the dynamic and interconnected world of the 21st century.


The 21st century has witnessed the pervasive influence of digital technologies, acting as transformative forces that reshape the economic landscape across various domains. This article delves into the multifaceted impact of digitalization, focusing on the workforce, the global labor market, social and labor relations, and the challenges and prospects within this rapidly evolving digital ecosystem.

The workforce is undergoing a profound transformation due to digital technologies like automation, artificial intelligence, and advanced robotics. Traditional job roles are evolving, necessitating adaptability and a continuous learning mindset. The emergence of a digital segment in the global labor market, characterized by digital employment and social relations, signifies a shift in the nature of work processes. The digital segment's growth is propelled by the integral and transformational functions of information globalization, unifying global development potentials and altering production methods. With a focus on information space jobs, flexible work arrangements, and increased digitalization, the labor market reflects the ongoing impact of digital accessibility and technological advancements.

The digitalization of social and labor relations brings forth challenges such as a lack of regulation in the global labor market, diverse entities with varying norms, and the presence of order executors in the "shadow sector." Despite these challenges, digitalization offers opportunities for global collaboration and innovation. However, it also contributes to technological unemployment, necessitating a concerted effort to implement reskilling and upskilling programs to meet the evolving demands of the digital economy.

The implementation of a digital workplace introduces enhanced collaboration, flexibility, improved communication, increased productivity, and access to information. However, it is not without challenges. Security concerns, resistance to change, technical issues, information overload, and the potential loss of personal interaction highlight the need for strategic management of digital workplace transitions. Digital technologies, including cloud computing, data analytics, and smart technologies, play a pivotal role in boosting productivity across industries. Innovation becomes a driving force, requiring effective motivation strategies to foster a culture of creativity and adaptability within organizations. Consumer behavior undergoes a revolution fueled by e-commerce, social media, and personalized digital experiences. The trends include a commitment to a healthy lifestyle, rapid digitalization, a desire for live communication and socialization, a focus on meaning and personal development, and the increasing personalization of consumption. As the economy becomes more digitized, cybersecurity becomes a paramount concern. The interconnected nature of businesses and the prevalence of digital transactions expose them to cyber threats. Safeguarding personal data and ensuring digital system integrity requires continuous investment in robust cybersecurity measures. Digital technologies revolutionize education, providing online courses, virtual classrooms, and interactive learning platforms. The accessibility of information empowers individuals to upskill and reskill, fostering a more adaptable and dynamic workforce ready for the challenges of the digital future.

In conclusion, the digital transformation presents both opportunities and challenges across various economic dimensions. Successful navigation of these changes requires a proactive and strategic approach to workforce adaptation, cybersecurity enhancement, and sectoral reshaping.



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Информация об авторах

Bachelor's degree in Finance and Accounting, Azerbaijan State Economic University, Vytautas Magnus University with a Finance Master's degree , Fund Accountant, Luthiania, Vilnius

степень бакалавра финансов и бухгалтерского учета, Азербайджанский Государственный Экономический Университет, Университет Витаутаса Великого со степенью магистра финансов, бухгалтер фонда, Литва, г. Вильнюс

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