Labor Market Soft Skills in the Context of Digitalization of the Economy

Abstract

Economies globally have relied on the difficulties of labor market operations. Their survival is based on their ability to adapt to the realities of current technological and digital requirements. The purpose of this study was to assess the future needs of the labor market for soft skills acquired by employees in the context of digitalization of the economy in facing modern attributes of labor market requirements using secondary data. The arguments advanced in this paper are premised on the notion that the digitalization of the economy leads to an increase in employers’ need for employees to acquire soft skills. The study is grounded on the Goal-Setting Theory of Motivation, which presupposes that there is a critical link between the goals individuals or organizations set for themselves and their performance. The analysis of the selected studies revealed that soft skills are considered critical during job interviews and are becoming increasingly scarce. This study predicts a shortage of employees with soft skills, accompanied by an increase in employers’ need for flexible skills. Additionally, this research recommends that discussions should consider the implications of digital technologies for personnel management and holistic measures to safeguard organizational wellbeing and protect the labor market economy through digitalization.