The Impact of Digital Economy Development on Labor Employment Transformation

Abstract

The rapid development of the digital economy has profoundly reshaped the landscape of labor employment markets. Based on Chinese provincial panel data, this study investigates the mechanisms and empirical impacts of digital economy on labor transformation from skill structure and industrial dimensions. The research reveals three key findings: First, digital technologies have significantly increased demand for high-skilled labor through a “polarization effect,” while reducing the proportion of medium- to low-skilled jobs. Second, the digital economy has driven industrial upgrading toward service-oriented and high-end sectors, with the tertiary industry’s employment share continuously rising. Third, regional economic development levels, human capital accumulation, and urbanization processes play regulatory roles in digital-economy-driven employment transitions. Policy implications include strengthening digital infrastructure construction, improving multi-level education systems to cultivate new talent, and accelerating the digital transformation of traditional industries. This study provides theoretical foundations and practical pathways for implementing an employment-prioritizing strategy in the digital economy era.