The Effects and Challenges of Covid-19 on Digital Transformation in the Demographic and Economic Sector

Abstract

The digital transformation, in the demographic and economic sectors, has been accelerated by the COVID-19 pandemic, and has led to the rapid adoption of digital technologies, which have increased productivity and operational resilience. The COVID-19 pandemic has highlighted significant digital divergences, driven by age, education, income and location-based gaps, affecting access to remote work and digital services. Workers in digital area or with digital roles have been relatively protected, while employees in the traditional sector have faced increased vulnerability. In addition, the shift to remote work has raised challenges in terms of workforce management, cybersecurity and infrastructure. While digital technology adoption has increased, evidence of lasting structural changes in labor demand remains limited, indicating that the pandemic has acted more as a catalyst than a transformer. Addressing the digital differences and investing in skills and infrastructure are essential to ensure an inclusive and sustainable economic recovery. UDC: 616-036.22:[004.7:338.05](478); JEL: C10, C46, C51