THE IMPACT OF DIGITALIZATION ON ROMANIA'S LABOR MARKET: TRANSFORMATIONS, CHALLENGES, AND STRATEGIC IMPLICATIONS

This paper explores the impact of digitalization on Romania's labor market, focusing on the transformations, challenges, and strategic implications associated with this technological shift. The study employs a quantitative research approach, utilizing a structured questionnaire distributed to 500 employees and employers across various economic sectors in Romania. The demographic diversity of the sample, which includes participants from different regions, industries, and educational backgrounds, provides a comprehensive perspective on the effects of digitalization. Three hypotheses were tested: the increasing demand for digital skills, the influence of digitalization on productivity, and the associated challenges in managing a digitally transformed workforce. The findings confirm that digitalization significantly enhances productivity and underscores the critical importance of digital skills in securing well-paying and stable jobs. However, the study also reveals significant challenges, including the need for continuous reskilling, managing resistance to change, and addressing the digital divide. The results indicated a significant increase in demand for technological roles and a decline in traditional manual jobs, emphasizing the need for continuous digital skills. Digitalization also enhances productivity, particularly in IT, manufacturing, and services, but poses challenges in human resource management and organizational adaptation. Strategic implications call for investments in education, digital infrastructure, and proactive public policies to maximize benefits and minimize the negative impacts of digital transformation. The findings also emphasize the importance of preparing the workforce for a digital economy to ensure long-term competitiveness and growth that is conducive to inclusion. The research concludes with theoretical and managerial implications and suggests directions for future studies to further investigate the long-term effects of digitalization on labor markets.