Digital Transformation and Employment Patterns among Manufacturing and Service Enterprises in China: A Model Analysis

Althea  U. Denuevo,; Jianyou  Lu,

Digital Transformation and Employment Patterns among Manufacturing and Service Enterprises in China: A Model Analysis

Abstract:

This study examines the relationship between digital transformation and employment patterns among 364 manufacturing and service enterprises in Guangdong Province, China. Using correlation and regression analyses, the research reveals that digital transformation significantly affects employment opportunities and structure in manufacturing firms, particularly in the areas of marketing and sales and partner relationships. However, its influence on service enterprises is confined to employment structure, with minimal impact on turnover rates in both sectors. Notably, digital transformation in partner relationships emerged as the strongest predictor of an upskilled workforce in both enterprise types. These findings highlight the nuanced labor market implications of digitalization and suggest that sector-specific strategies and government support are vital to maximizing the benefits of digital transformation while mitigating employment risks.

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