Modern agricultural machines increase labor performance to boost economic development while benefiting transition economies that used to rely mainly on farming. Research through systematic review evaluates the connection between mechanization and labor productivity by combining results from multiple studies to analyse economic effects, employment adjustment, and policy requirements. The research evaluates farm efficiency improvements alongside wage and job market transformations from mechanized agriculture by establishing separate relationships between smallholders and large-scale farmers. Mechanization drives major productivity improvements yet creates particular employment patterns that lead to worker relocation over displacement of employment. The analysis detects various obstacles preventing developing nations from adopting mechanical solutions, such as financial restrictions, credit limitations, substandard infrastructure, and cultural resistance to modern technology. This research study uses a meta-analysis method, which combines analysis from evidence in academic publications and official economic and policy documents. The research depends on fixed-effects and random-effects statistical models for robustness and conducts sensitivity tests to examine heterogeneity and publication bias. Modern farming methods create major output growth and decrease work requirements, which boost household fortunes when coupled with proper supporting economic measures. Implementing mechanization causes rural unemployment to grow and increased income differences unless policymakers adopt inclusive measures. Research data shows the necessity for specialized economic stimulus, including public support and monetary empowerment programs and responsible equipment adoption methods to advance agricultural efficiency alongside social harmony requirements. The study offers essential knowledge to policymakers, investors and development agencies about the importance of inclusive mechanization for agricultural transformation and economic sustainability.