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#10
Trends

This essay presents the main trends of changes in the labor market in connection with the digitalization of the world economy. The interrelated problems of increasing labor productivity, reducing workplaces, and ensuring effective demand are considered. The authors propose considering digitalization as a way of promoting creativity in workplaces, albeit having a delayed effect due to the lag in time for the establishment of a world new economic order, during which services are becoming the main product. Digital platforms and ecosystems are the main actors in the global economy. Creativization is a new term suggested by the authors. It means a workplace that is being transformed by digitalization. Monotonous work processes are replaced by intellectually. Intensive operations, art elements, and unique high-performance activities. In this essay, we would like to share our observations of changes in the labor market. During the period of mass digitalization of business, government, and society in the world. When labor market and wage reforms began in China. It was difficult to imagine that the labor market would change so rapidly in a few decades. This situation is limited, however, in terms of China’s population. Average age, and the prevalence of young people in the total population. For example, to provide the population with income. It is necessary to create about 10–15 million new jobs annually. If the trend of population growth continues. The demand for new workplaces may increase even more. However, the opposite effect has a gradual decrease. In the share of young people in the working-age population. Chairman Xi Jinping has pointed out that “we should take advantage of the historical opportunities. The digital economy provides to increase the medium and long-term growth potential of the global economy”. According to Premier of the State Council Li Keqiang. The post-COVID development of the Chinese economy is already showing positive signals of revival. In April, for the first time since the beginning of the year, industrial production in the country showed an increase of 3%. China aims to create more than 9 million new workplaces this year. Unemployment will be kept at 6 %. Another important limiting component is the level of the digitalization of the economy. For example, in accordance with the definition of a digital economy provided by the OECD methodology. China’s digital economy forms about 6 % of the country’s GDP. The Chinese officials have set a goal to increase the share of GDP. Made from the digital economy to 50 % by 2030. In terms of the digitalization of the economy, China demonstrates the global average. It adds to the discussion about choosing the development path through either a free or a regulated market economy. A free market economy, as is well known, is characteristic for Western countries. Whilst a regulated market economy is characteristic for Eastern countries. Undecided about either path of development, countries are trying to alternately implement both models, in search of a recipe for overcoming the global economic crisis (caused largely by the coronavirus pandemic). A free-market economy, through self-regulation, forms a new economic order due to increased unemployment. A decrease in the price of labor, which gives hope for the creation of new workplaces. A new round of economic growth based on the digitalization of the economy. Institutionally, this is expressed in the creation and dominance of digital platforms. Ecosystems in the market that can significantly increase the efficiency of production operations in the value chain. The regulated market economy — the model of which has been implemented. In China in its most complete form. Provides for enhancing government participation in creating new workplaces. Increasing employment and launching new economic growth through effective demand. In both models, as can be seen, the central point belongs to the labor market. That is, through it a new round of economic growth will be carried out. Albeit due to different instruments and, accordingly. With different consequences for the income of the population. The level of their life satisfaction. Highly developed Western countries can afford a more “brutal”. It faster way to ensure economic growth, as poverty is understood in very different ways in Western and Eastern countries. The population of rich countries during a period of unemployment receives benefits from the state, which significantly exceeds wages in the Eastern countries. It could be countered that prices in these countries for food and utilities differ significantly. We agree with this only in part, since the possibilities for rich countries to support the poor are higher.
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