ANALYSIS OF THE IMPACT OF DIGITAL TECHNOLOGIES ON INFORMAL EMPLOYMENT IN THE REPUBLIC OF AZERBAIJAN

Abstract

The article provides a comprehensive analysis of the impact of digital technologies on informal employment in the Republic of Azerbaijan. The study evaluates the influence of the global digitalization process on the structure of the labor market, particularly in the context of the emergence of platform-based employment models. Based on national employment indicators, indirect calculations are conducted, revealing that the level of informal employment in 2025 was approximately 35 percent. While the article highlights the positive effects of digital platforms (such as Uber, Bolt, Wolt, Upwork, Freelancer, etc.) in increasing labor market flexibility and creating new income opportunities, it also substantiates the risks posed to the social protection system, the tax base, and labor rights. The study emphasizes that digitalization creates inclusive opportunities for youth and women; however, it simultaneously deepens the “digital divide” and skills inequality. As a result of the research, the improvement of the legal regulation of digital labor relations, the expansion of social insurance mechanisms, and the strengthening of active labor market policies are identified as priority directions for reducing informal employment.