Empowerment or Disempowerment: The Employment-Stabilizing Effect of Digital Transformation in Private Enterprises

Lu Xiong; Yingjie Huang; Zhen Rao

doi:10.62051/ijgem.v10n7.15

Authors

Lu Xiong College of Management, Sichuan University of Science & Engineering, Zigong, China
Yingjie Huang Sichuan University of Science & Engineering University, Zigong, China
Zhen Rao College of Management, Sichuan University of Science & Engineering, Zigong, China

DOI:

https://doi.org/10.62051/ijgem.v10n7.15

Keywords:

Digital transformation, Stable employment, private enterprise, Employment scale

Abstract

Employment is the foundation of people’s livelihood and a crucial driver of economic growth. Against the backdrop of intensified economic downturn and deep integration of digital technologies, private enterprises, as the "main force" supporting over 80% of urban employment, face a pivotal challenge: whether their digital transformation can solidify the "employment reservoir." Based on data from China’s A-share listed companies between 2013 and 2023, this study empirically examines the impact of digital transformation on employment scale in private enterprises and its underlying mechanisms. The findings reveal that digital transformation expands employment scale in private enterprises, with this effect being more pronounced in firms with higher education levels, mid-to-high-skilled labor, and those located in larger cities. Mechanism analysis demonstrates that digital transformation drives employment expansion by broadening business scale and enhancing productivity. Specifically, digital technologies extend market boundaries and business complexity, leading to increased demand for various types of labor. Simultaneously, efficiency gains from technological applications also structurally facilitate the reallocation of labor resources, thereby driving overall employment growth. The research conclusions provide empirical evidence for comprehensively assessing the actual impact of digital transformation on employment markets in China’s private enterprises. They also offer policy insights into balancing employment stability and labor structure optimization while advancing the development of the digital economy.

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