THE RELATIONSHIP BETWEEN THE DIGITAL ECONOMY AND EMPLOYMENT

Аннотация

The digitalization of the economy is opening up vast opportunities in many countries today. In particular, the digital economy not only creates numerous opportunities for the population but also plays a crucial role in the socio-economic development of the state. This article discusses the advantages of the digital economy and its role in reducing the shadow economy and informal employment. Key words: digital economy, shadow economy, informal employment, e-government, economic growth, labor productivity. Introduction: In many countries around the world, the introduction of e-government began with the emergence of new technologies. Although there are various debates on this issue, e-government is generally defined as the use of ICT to improve the functioning of public sector organizations. As a result of advanced technological tools, "E-government aims to enhance relations between people and their governments by improving the efficiency of service delivery, ensuring easy access for all, considering people's needs, increasing public participation in decision-making, and enhancing the transparency and accountability of state institutions."1 The demand for labor is expected to increase for innovative products and services, whereas the opposite can be expected for more standardized products. For example, Rifkin argues that in the future, the digital revolution will significantly reduce employment, as he considers the marginal cost of production to be close to zero2. This means that even a low-wage worker would be more expensive than the additional costs required to operate a smart machine. However, this pessimistic scenario can only materialize if the level of production remains unchanged.. We are witnessing the rapid expansion of new opportunities for entrepreneurship and self- employment in the digital economy. In many cases, investments aimed at developing ICT have resulted in economic growth, the creation of new jobs, the emergence of new services for the population and businesses, and the reduction of government administration costs within e- government projects. The advantages of horizontal networks over hierarchical ones—primarily 1 Ўзбекистон Республикаси Президентининг 2020 йил 28 апрелдаги “Рақамли иқтисодиёт ва электрон ҳукуматни кенг жорий этиш чора-тадбирлари тўғрисида” ПҚ-4699-сонли қарори. 2 Policies to Reduce Informal Employment. An International Survey. Technical Note for the Government of Ukraine. The World Bank - 2011. – 17 p. 119 RAQAMLI DUNYO: MATEMATIK VA INFORMATIK 2025 -Yil YONDASHUVLAR 13-Fevral Respublika ilmiy-uslubiy konferensiyasi due to their higher exchange speed and diversity—serve as the foundation for a new phase of economic growth. The 2016 ILO study, “Non-Standard Employment Around the World: Understanding Challenges, Shaping Prospects”, explored various perspectives on the relationship between new technologies and informality. Some studies focus on the emergence of new forms of informality, particularly the rise of non-standard employment. Others examine the processes and challenges faced by informal sector entities in adopting new technologies into their businesses or activities. Additionally, some researchers analyze the impact of technology on productivity and informality. Moreover, there is an increasing view that the distinction between formal and informal employment is becoming less clear, making these categories increasingly difficult to differentiate.3 As a result of analyzing various characteristics of the digital economy that may impact the labor market, the following figure highlights its strengths and opportunities. The Impact of the Digital Economy on the Labor Market Strengths Opportunities 1. A connected World, open systems, 1.New jobs (Computer engineers and and a knowledge-based economy s cientists, network specialist, etc) 2. Automation, robotics, and machine 2. Establishing more “flexible” and learning autonomous work models 3. Productivity, efficiency, speed, and 3. Elimination of repetitive and Monotonous profitability tasks 4. Cost-effective efficiency with near- 4. Improving economics, assisting in heavy or zero marginal costs complex tasks 5. Innovative products and services, 5.New mwthods of labor productivity “Life-Simplifying” applications distribution (reducing working hours) 6.Industry and services 6. new forms of employee collaboration 1–picture. The impact of the digital economy on the labor market Source: Compiled by the author. The formation of a digitalized economy has distinct characteristics, primarily defined by the expansion and systematization of digital content (the object of labor) and the automatic creation of added value without human intervention. One of the key features of the digital economy is the speed of change in practical business models and management within the production of goods and services. Although Table 1 presents the potential economic and social benefits of digitalizing the economy, all studies highlight that this "