The relevance of the subject of research is determined by the rapid development of digital technologies, which radically change working conditions and require new skills and competencies from employees. Digitalization of modern society brings both risks and new opportunities that transform the nature of work and the role of a person in the work process. The development of artificial intelligence, automation of processes and the spread of digital tools lead to the changes in the requirements for professional skills and competencies, playing a key role in shaping the modern labor market. The objective of the study is to analyze the impact of digitalization on the process of evolution of employees’ competencies and changing needs in the labor market. Both positive and negative consequences of transformation of labor markets in developed countries are considered. General trends in higher education have been determined, the purpose of which is to provide the quality of higher education. Specific skills that are becoming more important in connection with digital development are characterized. Possible ways to improve education programs and training courses to meet the new requirements of the labor market are analyzed. The important role of education in adapting to changes in the labor market and the need to ensure the quality of higher education and prepare students for the requirements of the digital economy by developing specific skills and competencies are highlighted.