Shaping Employment through Digital Transformation: Beyond Broadband and Security in Central and Eastern Europe

Abstract Digital technology has been incorporated into economies in such a way that transforms the very dynamics of labor markets. The most unprecedented forms that influence employment have been broadband expansion supported by wide-spread belief. Even with expansiveness in broadband, the potential effect of secure internet infrastructures on labor market outcomes is not fully understood. This paper tries to analyze the relationship between broadband penetration, secure online infrastructure, and employment in Central and Eastern Europe focusing on Hungary, Poland, and Romania. Existing research directly links digitalization with increased connectivity plus innovation-driven employment. More poorly analyzed aspects see secure digital environments as advancing labor markets by enabling digital entrepreneurship through higher trust levels in online transactions plus support for knowledge-intensive industry responding to its needs. This study attempts to further the understanding of digital transformation by analyzing to what extent secure online systems and general internet availability facilitate employment transformation. It is attempted in this paper to demonstrate the relationship between broad usage, secure digital systems, and employment trends over a decade with an econometric method using a multi-factor regression model. Country-level variations are where this paper estimates the magnitude factors of digitization for different labor changes; thus, this study contributes to the discussion on digital transformation by indicating how connectivity and security requirements together constitute one approach in predicting impacts and making their adjustments in labor markets. The findings therein give an appropriate direction for policymakers and business leaders who want to ensure that labor market dynamics remain buoyant while ushering in the new digital economy.