The project topic is “The impact of business digitalization on employment and unemployment rate”.
Business digitalization is reflected in such activities of companies when companies use the Internet in their activities, use information technology systems for business, employ or train information technology specialists, engage in e-commerce, use e-invoices, hold remote meetings, provide employees with remote access, use big data, e-security measures, the Internet of Things, robots, 3D printers, artificial intelligence, perform big data analysis, etc.
The rapidly spreading processes of digitalization of industry and the entire economy have a significant impact on the modern labor market. Due to the implementation of new technologies, automation of production, robotization, and the use of artificial intelligence, labor productivity increases, wages of qualified employees rise, capital is accumulated, and new jobs are created. However, the structure of labor demand is also changing, the need for lower-skilled workers is decreasing, and the threat of unemployment growth is emerging. Therefore, it is important to monitor and assess the impact of digitalization on key labor market indicators – employment and unemployment.
Research has shown that the introduction of digital technologies, such as artificial intelligence, big data, cloud computing, and blockchain, significantly reduces overall employment (Gao et al., 2025), but the impact on unemployment varies in the short and long term (Quin et al., 2024) and depends on the stage of digitalization development (early or advanced) of a country (Abbasabadi & Soleimani, 2021). Therefore, when promoting digital transformation, it is necessary to carefully monitor its impact on employment and unemployment and seek to mitigate the “technological unemployment” shock. The aim of this project research is to investigate the impact of business digitalization on employment and unemployment rates in Lithuania.
Period of project implementation: 2025-10-01 - 2026-04-30
Project coordinator: Kaunas University of Technology
