Southeast European Review of Business and Economics 38 LABOUR PRODUCTIVITY IN TERMS OF THE FOURTH INDUSTRIAL REVOLUTION Borche Trenovski, Marija Trpkova-Nestorovska, Gunter Merdzan, Kristijan Kozheski DOI 10.20544/SERBE.02.01.20.P03 ABSTRACT Recently, many studies and analysis confirmed that the world is at the beginning of a powerful process of transformation that will radically change our lives, ways of working and communicating.The Fourth Industrial Revolution is expected to improve the computerization of manufacturing industry and focuses on equipping the production with high technology. Three main goals of Industry 4.0 could be highlighted as: (1) Reduction of the human factor in manufacturing thus eliminating human errors. (2) Achieving high level of manufacturing flexibility and creating conditions for designing products that meet the specific requirements of the consumer. (3) Intensification of the production process.This paper aims to present the main trends in this field, to explain the benefits of technology and digitization for the global economy as well as to elaborate the importance of preparing different segments of society for effects from the Fourth Industrial Revolution onto the global labour market. This study obtains a panel data of six countries (France, Germany, Italy, Spain, UK and USA) for period between 1985 to 2017. The results have shown that information and communications technology and multifactor productivity are variables who have significant and positive impact on labour productivity while the variable average hours worked per person employed has a negative impact. Additional analysis of the demographic and socio-economic trends shows that the labour market will experience radical changes in the future. Keywords:Fourth Industrial Revolution, Labour market, ICT, MFP 1. INTRODUCTION A series of industrial revolutions took place after the 18th century. This process began by transforming the muscle into mechanical power that lead to an increase in human production through the cognitive power caused by the Fourth Industrial Revolution today. The First Industrial Revolution lasted from 1760 until 1840 was led by the mechanical production through the construction of railroads and steam engines. Serial production supported by electricity and the assembly line in the late 19th and early 20th century started the Second Industrial Revolution. Third Industrial Revolution began in the 1960s and it was characterized as computer or digital