Digital transformation and the labor market: experience of developed countries and analysis in the context of Azerbaijan

digital transformation has become a key factor in the development of the economy and the labor market. Rapid technology adoption, automation, and artificial intelligence are changing the composition of the workforce, employment structure, and skill requirements. The experience of developed countries demonstrates both new opportunities and social and structural challenges. In Azerbaijan, digital transformation is relevant in the context of state strategies for developing a digital economy. Objective: To study the experience of developed countries in the field of the digital labor market, assess the level of digital transformation in Azerbaijan, evaluate the effectiveness of state policy and employment opportunities, and provide recommendations for developing digital skills, infrastructure, and social adaptation mechanisms. Method: Comparative analysis of the experience of Japan, Singapore, and South Korea was applied, along with analysis of statistical data on digital employment and study of state strategies and policies in the digital economy. Based on international best practices, recommendations for Azerbaijan were developed. Results: Digital transformation expands economic opportunities and the range of jobs but causes structural changes and skill shortages. An effective digital labor market requires a flexible education system, technology adoption, and a developed social protection system. For Azerbaijan, key measures include enhancing digital skills, modernizing infrastructure, developing startups and platform-based jobs. Conclusion: Digital transformation creates new opportunities in the labor market while simultaneously causing structural changes and requiring workforce adaptation.

digital transformation, labor market, innovation, digital skills, Azerbaijan, developed countries