Digital transformation has fundamentally reshaped economic systems, labour markets, and educational institutions by accelerating technological innovation, automation, artificial intelligence, digital connectivity, and data-driven decision-making. While digitalization has created unprecedented opportunities for productivity enhancement, flexible employment, knowledge dissemination, and global economic integration, it has simultaneously intensified concerns regarding workforce displacement, widening digital inequalities, skills mismatches, and the sustainability of existing education systems. This research and review paper develops a comprehensive analytical framework that integrates digital transformation, economic growth, labour market evolution, and educational adaptation into a unified conceptual model. Drawing exclusively upon established literature, policy reports, and institutional studies, the paper critically evaluates the mechanisms through which digital technologies influence productivity, employment structures, digital literacy, lifelong learning, remote work, and human capital development. The review further examines how governments, industries, and educational institutions can collaborate to reduce the emerging gap between technological advancement and workforce preparedness. Particular attention is given to digital literacy, blended learning, sustainable assessment, automation, teleworking, and policy-driven digital transformation strategies. The proposed framework demonstrates that sustainable economic development depends not only on technological adoption but also on continuous investment in education, adaptive labour policies, and inclusive digital governance. The findings indicate that resilient labour markets require dynamic educational systems capable of supporting lifelong learning, digital competencies, and interdisciplinary workforce development. The paper contributes to existing knowledge by integrating fragmented research into a holistic framework that explains the interdependence of digital transformation, labour market resilience, educational modernization, and economic competitiveness in an increasingly digital global economy.
