The Impact of Automation on Labor Market Transformation and Sustainable Development: Empirical Evidence from Vietnam

Abstract:

This study investigates the impact of automation on labor market transformation and sustainable development in Vietnam using the Skill-Biased Technological Change (SBTC) framework. Based on a survey of 296 employees and analyzed through SEM, findings reveal that automation intensity significantly influences job change, skill upgrading, and job quality. Moreover, job change enhances labor market flexibility and social protection, while skill upgrading strengthens adaptability. Ultimately, job quality, social protection, and flexibility positively affect sustainable development outcomes. The research highlights automation’s dual role - both as a driver of productivity and a challenge to equitable, sustainable growth in emerging economies.