IMPROVING EMPLOYMENT POLICY IN THE CONDITIONS OF THE DIGITAL ECONOMY

ISSN: 2582-4686 SJIF 2021-3.261,SJIF 20222.889, 2024-6.875 ResearchBib IF: 9.948 / 2024 VOLUME-5, ISSUE-11 416 IMPROVING EMPLOYMENT POLICY IN THE CONDITIONS OF THE DIGITAL ECONOMY Kenjayeva Sabohat Safarovna 4th-year student, Department of Economics, Termiz State University Email: safarovna[email protected] ABSTRACT This article examines the impact of the digital economy on Uzbekistan’s labor market and employment policy. Based on statistical data from 2020–2024, the paper analyzes the growth of employed population, the creation of new jobs in the digital sector, and the structural changes in employment by industry. Keywords: digital economy, employment policy, labor market, IT sector, jobs, digital transformation, Uzbekistan. 1. INTRODUCTION In recent years, the rapid development of the digital economy in Uzbekistan has had a significant influence on the labor market. New technologies, artificial intelligence, automation systems, and remote work formats are creating a new model of employment generation. During 2020–2024, large-scale reforms were implemented to modernize employment policy under the framework of the “Digital Uzbekistan – 2030” strategy, the expansion of IT Parks, and the development of e-government systems. The purpose of this study is to analyze the impact of the digital economy on the labor market and employment policy of Uzbekistan, identify key trends, and develop practical recommendations for improvement. The research uses data from the State Statistics Agency, IT Park Uzbekistan, and the World Bank covering the years 2020–2024. 2. Research Methodology The study applies a descriptive and comparative analysis based on official national and international datasets. Indicators such as total employment, unemployment rate, and new jobs created in the IT sector are analyzed. Graphical interpretation and trend analysis are used to assess the relationship between digitalization and employment growth. Data sources include the State Statistics Agency of Uzbekistan, IT Park Annual Reports, and the World Bank’s Digital Economy Review (2023). 3. Employment Dynamics and Labor Market Trends (2020–2024) Uzbekistan’s labor market has shown stable growth in recent years. According to the data, the total number of employed persons increased from 13.6 million in 2020 to 14.8 million in 2024, meaning that approximately 1.2 million new jobs were created. Meanwhile, the unemployment rate decreased from 10.5% in 2020 to 8.1% in 2024, reflecting a positive trend associated with economic recovery, the expansion of the services sector, and the growth of digital employment opportunities. ISSN: 2582-4686 SJIF 2021-3.261,SJIF 20222.889, 2024-6.875 ResearchBib IF: 9.948 / 2024 VOLUME-5, ISSUE-11 417 Table 1. Employment and unemployment rate in Uzbekistan (2020–2024) 1 Figure 1. Trends in employment growth and declining unemployment (2020–2024) 2 The most notable change occurred during 2022–2023, when the unemployment rate fell from 9.3% to 8.7%. This improvement was driven by new digital employment opportunities, the rise of remote work, and the expansion of small business and startup activity. Government programs such as “Yoshlar daftari” (Youth Register), “Ayollar daftari” (Women’s Register), and “Tadbirkor ayol” (Women Entrepreneur) also contributed significantly to inclusive employment growth, especially among youth and women. 1 Author’s calculation. Source: Statistics Agency of Uzbekistan, 2024. 2 Author’s compilation ISSN: 2582-4686 SJIF 2021-3.261,SJIF 20222.889, 2024-6.875 ResearchBib IF: 9.948 / 2024 VOLUME-5, ISSUE-11 418 4. Growth of Employment in the IT Sector The IT sector has become one of the most active components of the digital economy. Between 2020 and 2024, the number of jobs created in the IT sector increased nearly 4.3 times — from 12,000 in 2020 to 52,000 in 2024. Figure 2. Dynamics of new jobs created in the IT sector (2020–2024) 3 This growth was driven by: ❖ expansion of digital infrastructure projects, ❖ the strengthening of IT Parks’ operations, ❖ the spread of remote work systems, and ❖ the entry of international IT companies into the Uzbek market. In addition, government and private initiatives such as “One Million Uzbek Coders”, “IT-Talim”, and “Startup Initiative” programs have played an important role in training qualified specialists and increasing employment levels in digital professions. 5. Conclusion The digital economy has opened a new stage in Uzbekistan’s labor market development. Between 2020 and 2024, jobs in the IT sector increased fourfold, while the unemployment rate declined by 2.4 percentage points. Going forward, employment policy should prioritize: ❖ the expansion of digital skills and professions, ❖ increased access to IT education for women and youth, and ❖ the promotion of remote and flexible work formats across regions. These measures will ensure that the digital transformation process contributes effectively to sustainable employment and inclusive economic growth. 3 Compiled by the author. Source: IT Park Uzbekistan, 2024. ISSN: 2582-4686 SJIF 2021-3.261,SJIF 20222.889, 2024-6.875 ResearchBib IF: 9.948 / 2024 VOLUME-5, ISSUE-11 419 REFERENCES 1. Presidential Decree of the Republic of Uzbekistan “Digital Uzbekistan – 2030” Strategy, 2020. 2. Ministry of Employment and Labor Relations. Employment and Unemployment Report, Stat.uz, 2024. 3. IT Park Uzbekistan. Annual Report 2024. 4. World Bank. Uzbekistan Digital Economy Development Review, Washington, D.C., 2023. 5. UNDP Uzbekistan. Digital Transformation and Labour Market Report, 2024. 6. International Labour Organization (ILO). Labour Market Profile: Uzbekistan, Geneva, 2022. 7. Qurbonova N. Improving Employment Policy in the Digital Economy, Economics and Education Journal, 2023, No. 4, pp. 115–120.