Labor Disruptions under the Ascendancy of Digital Technologies

Purpose: This study aimed to assess the impact of labor disruptions caused by the rise of digital technologies on workers and organizations, considering both opportunities and challenges. Methodology: A systematic review of literature was conducted, analyzing research from peer-reviewed journals, industry reports, and case studies. The review focused on key themes such as productivity, job displacement, skill development, and mental health challenges related to digital technologies. Findings: According to the study findings, digital technologies significantly boosted productivity and created new job opportunities in emerging fields, while also offering greater work flexibility. However, these advancements also led to job displacement, widened the skills gap, exacerbated income inequality, and contributed to mental health issues, especially among older workers. Unique Contribution to Theory, Practice and Policy: It is recommended that organizations implement upskilling programs to close the skills gap and provide mental health support. Institutions should develop policies that promote work-life balance. Governments are advised to introduce measures to mitigate income inequality and assist displaced workers in transitioning to new roles. This study provides a comprehensive review of the dual effects of digital technologies on labor markets, offering valuable insights for organizations, policymakers, and governments to manage the challenges while capitalizing on the opportunities presented by digital transformations.