Lela Kintsurashvili is a PhD Candidate in Economics at Ivane Javakhishvili Tbilisi State University, Georgia. She holds a Master’s and Bachelor’s degree in Economics from Akaki Tsereteli State University. She has professional experience in academia, auditing, banking, financial analysis, and accounting, having worked with organizations including EY Georgia, Grant Thornton Georgia, and ProCredit Bank Georgia. Her research interests focus on human capital development, labor markets, digital transformation, workforce adaptation, skills and innovation, artificial intelligence, and the gig economy. She has authored several academic publications examining Georgia’s labor market, human capital formation, digitalization, and the impact of AI on employment. She also holds ACCA qualifications in finance and management and is proficient in Georgian, English, and Russian.

                                                                 Human Capital and the Future of Work in a Digitalizing EconomyAbstractThe rapid digital transformation of the economy, driven by technological progress, globalization, and the increasing adoption of digital technologies, is fundamentally reshaping labour markets, employment structures, occupational requirements, and the skills demanded from the workforce. These transformations have increased the importance of human capital as a critical determinant of productivity, innovation, competitiveness, and sustainable economic development. Against this background, the research focuses on the development and effective utilization of human capital in Georgia under conditions of digital transformation, with particular emphasis on the changing structure of the labour market and the alignment between labour demand and the knowledge, skills, and competencies supplied by the workforce.ObjectivesThe primary objective of the research is to examine contemporary approaches to the assessment and development of human capital and to analyze the impact of digital transformation on labour market, employment patterns, labour relations, and skills requirements. The research seeks to identify the principal trends and structural imbalances affecting human capital development, examine the factors constraining the effective utilization of workforce potential, and assess the capacity of the labour market and education system to adapt to technological change. Particular attention is given to the relationship between education and labour market requirements, the development of digital competencies, the demand for highly qualified professionals, and the challenges associated with skills mismatches. The research also aims to identify opportunities and risks arising from the continuation of current trends and to formulate evidence-based recommendations for improving human capital utilization and supporting sustainable labour market development in Georgia. MethodologyThe research applies a combination of theoretical and empirical methods, including analysis and synthesis, comparative and statistical analysis, index-based analysis, SWOT analysis and forecasting. The empirical component is based on two independent author-developed quantitative surveys conducted between December 2025 and March 2026. The first survey targeted employers and included 137 respondents, while the second targeted employees and included 522 respondents. The surveys examined employment conditions, digital competencies, skills requirements, workforce development priorities, and the alignment between labour supply and demand. The empirical findings were complemented by official statistical data, strategic and policy documents, and scientific publications. SWOT analysis and forecasting were applied to assess the opportunities, risks, and future development prospects of the Georgian labour market under continuing digital transformation. Key FindingsThe findings indicate the existence of significant structural and skills mismatches in Georgia’s labour market. The research demonstrates that the education and training system does not fully correspond to the rapidly changing requirements of the digital economy, contributing to a shortage of qualified professionals in strategically important and digitally intensive occupations. Particular challenges are observed in STEM-related fields, where relatively high productivity and wage levels coexist with insufficient availability of qualified labour. The findings from the employer survey indicate that organizations face difficulties in recruiting candidates with adequate practical experience, digital competencies, communication skills, and problem-solving abilities. At the same time, the employee survey demonstrates differences between existing workforce competencies and the skills increasingly required by employers. The limited development of innovation-intensive and high-value-added sectors further restricts opportunities for the effective utilization of human capital and the creation of high-productivity employment. These structural imbalances reduce the adaptability of the labour market and constrain Georgia’s capacity to achieve sustained productivity growth and greater international competitiveness. SignificanceThe research contributes to a comprehensive understanding of the relationship between human capital development, labour market transformation, and digitalization in Georgia. Its scientific contribution lies in integrating theoretical approaches to human capital with empirical evidence on labour demand and supply, while applying index-based and correlation analysis to examine their interrelationship. The research also provides an analytical basis for assessing potential future developments under conditions of continuing digital transformation. Its practical significance is reflected in the development of evidence-based recommendations that may support policymakers, educational institutions, employers, and other stakeholders in improving human capital development, reducing skills mismatches, strengthening digital competencies, enhancing the responsiveness of education and training systems, and promoting more effective labour market policies. The findings may ultimately contribute to the development of a more adaptable, productive, and innovation-oriented workforce and strengthen long-term economic competitiveness and sustainable development in the digital economy.