Tech-driven automation affects the labor market by transforming job roles and creating new opportunities while displacing some traditional jobs. Automation allows businesses to streamline processes and improve efficiency, potentially leading to lower operational costs. However, this shift requires workers to adapt and acquire new skills, especially in areas like data analysis, robotics, and software development. While some jobs may become obsolete, automation can lead to the emergence of higher-skilled jobs, emphasizing the need for workforce retraining and education.