Digitalization and employment: the role of service sector industries

The rapid growth of technology poses threats to certain employment areas. This issue is the subject of extensive discussions and research recent decades. The article explores an impact of automation, robotics and artificial intelligence on employment, examines the role of knowledgeintensive service sector industries in the creation of new jobs. The analysis of employment trends and labor productivity in the service sector is conducted, and the main trends in the development of the ICT sector are studied. The physical and routine tasks displacement by robots and computers, which is already taking place today, leaves the low-skilled labor force at a disadvantage. They have to go through the adaptation process to the new tasks, and should be ready to transform themselves into the high-skilled specialists who would be mainly concentrated in the services sector in the long term. It is concluded that new technologies, increasing labor productivity, are able to provide the creation of new jobs in the long term, primarily in the service sector industries, as well as in high-tech manufacturing industries

Keywords: employment, automation, robotics, artificial intelligence, service sector industries, physical and routine tasks, low-skilled labor force, high-skilled specialists


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