has caused dramatic effects on the world economy, business activities, and people. But digitization is also helping many companies to adapt and overcome the current situation caused by COVID-19. The growth in the use of technology in the daily lives of people and companies to face this exceptional situation is an evidence of the digital acceleration process. This exploratory study analyzes the impact of digital transformation processes in three business areas: labor and social relations, marketing and sales, and technology. The impact of digitalization is expected to be transversal to each area and will encourage the emergence of new digital products and services based on the principle of flexibility. Additionally, new ways of working will foster the demand for new talent regardless of people's geographical location. Moreover, cybersecurity and privacy will become two key elements that will support the integrated development of the Internet of Things technology solutions, artificial intelligence, big data, and robotics.

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PurposeThis short communication aims to explore and synthesize the main effects of COVID-19 on the labor market in Portugal regarding the dimensions related to job security and unemployment.Design/methodology/approachField research is used to identify and understand the challenges posed by the COVID-19 pandemic to the labor market in Portugal. Data from the National Institute of Statistics of Portugal are analyzed and compared with artifacts published in the field, which allow us to explore the impact of this phenomenon from multiple perspectives.FindingsThe findings indicate that the impact on the labor market is very asymmetric regarding geographical regions, sectors of activity, age groups and the nature of labor ties. The most touristic regions and those with a strong dependence on the exterior are the most affected. Young people and women with unstable employment relationships and in temporary work situations are also particularly vulnerable.Originality/valueThis study focuses on an emerging area with a strong impact of the COVID-19 pandemic on the labor market. This study seeks both to identify challenges in the Portuguese labor market and to discuss measures that should be taken to mitigate their effects, such as reforming the social security model, the role of teleworking or the more balanced development of the territory.