AI and Automation in the Labor Market: Literature Review on Implications for Employment, Skills, and Inclusive Growth

Labour markets in medium-developed economies are changing under the influence of automation and the digitalisation of production and services. These changes are widely discussed in relation to highly developed economies, but there is still less comparative research on transition and emerging economies. This paper analyses how automation affects employment structures and skill requirements in Poland and Türkiye. The two countries face similar technological pressures, although they differ in their institutional settings, education systems and labour market conditions.The study is based on a comparative review of the literature and secondary data from the World Economic Forum, the OECD, the ILO and national research institutions. The analysis shows that automation mainly affects routine and medium-skill jobs, while increasing the demand for digital competencies, analytical thinking and interpersonal skills. Poland appears to be more advanced in the shift towards high-skill employment, although skill gaps remain visible. Türkiye, in turn, faces more basic challenges related to digital and foundational literacy. In both countries, one of the main problems is the mismatch between the speed of technological adoption and the readiness of workers to adapt to these changes. The paper argues that the long-term effects of automation will depend not only on technology itself, but also on lifelong learning, labour market policy and investment in human capital.