A COMPREHENSIVE SYSTEM OF STATE POLICY FOR ADAPTING THE LABOR MARKET TO TECHNOLOGICAL CHANGES

DOI: 10.31673/2415-8089.2025.023874

Abstract

The fourth
industrial revolution fundamentally transforms global labor markets, creating unprecedented
challenges for employment systems and social protection mechanisms. Technological innovations
lead to massive reduction of traditional jobs while simultaneously creating new professional niches
requiring fundamentally different competencies. Existing social protection and professional training
systems prove insufficiently adaptive to rapid technological changes, actualizing the need for
comprehensive approaches to state employment policy. The study aims to develop a comprehensive
state policy system ensuring effective labor market adaptation to technological innovations through
integration of retraining instruments, social protection, and stimulation of new job creation. The research analyzed international experience of adaptation policy formation in fifteen countries,
conducted comparative analysis of different state policy system effectiveness, and developed an
integrated worker support system concept. Main results include identification of active state policy
system advantages combining preventive and reactive support instruments, substantiation of early
warning system necessity for labor market changes, development of comprehensive system structure
with four interconnected components, and determination of financing and coordination mechanisms.
The study demonstrated critical importance of systematic approach to labor market adaptation,
effectiveness of personalized professional development approaches through individual learning
accounts, and feasibility of social protection system modernization considering technological
unemployment specifics. Research showed that most effective are systems with high active labor
market policy expenditures, personalized professional development approaches, and adaptive social
protection systems. Further research should focus on detailed elaboration of proposed system
component implementation mechanisms considering economic effects of element interactions.
Keywords: technological transformation of employment, labor market policy, worker retraining,
social protection, economic digitalization, workplace automation, professional
development, technological adaptation.

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