Shadow employment through the prism of digital technologies in Ukraine: analysis and ways of adaptation

Анотація

The article analyzes the process of shadow employment formation through the prism of modern digital technologies in Ukraine. The authors reveal that the theoretical content of shadow employment is ambiguous, as there is no clear coordinated mechanism for its definition among both domestic and foreign scholars. Essentially, the concept of «shadow employment» is multidimensional, encompassing «informal employment», «undeclared work», «unregistered activities», «unofficial labor», and others, indicating a lack of coherence and a regulatory control system for this phenomenon. In the current state of economic, pandemic, and military escalation challenges and threats in Ukraine, the era of digital technologies has become widespread, leading to opportunities for shadow employment. The article shows that the number of informally employed population had a tendency to decrease in 2021, reaching 3 million people, which is 3.4% less than in 2017. However, due to the full-scale invasion of russia into Ukraine, the data have not been updated since 2022. Based on the study of the Freelancehunt platform, the article proves that the level of adaptation of labor resources to changes in the modern labor market through digital technologies is quite high. This understanding also confirms the importance and scaling of freelancing in the sphere of economic activity of the state, which occupies a significant share of opportunities in the Ukrainian labor market, meeting the demands of business and the modern challenges of advanced technologies. The authors show the index of digital transformation in Ukraine, which includes various aspects of social life, while the highest indicators observed include «paperless mode», «institutional capacity» and «penetration of basic e-services». The article outlines the characteristic features of shadow employment through the use of digital technologies, along with its inherent advantages and disadvantages in the era of the scaling digitalization. The ways to adapt shadow employment through the prism of digital technologies in Ukraine are proposed, with an emphasis on a humane approach with promising opportunities for social guarantees, security, and a tolerant attitude of society in the further use of digital technology aspects in the labor market.

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