Labor Market Dynamics Research Articles

Striking disparities in employment across South Africa: Evidence from a new spatial database

ABSTRACT Public awareness of the unequal distribution of economic opportunities across the territory of South Africa has been hampered by limited information and analysis. This paper makes use of a new source of spatial economic statistics to illuminate key features of the country’s economic geography. We reveal the striking concentration of employment in cities and discuss both the quantity and character of these jobs. The metros have a more favourable and diverse economic structure than towns and rural areas. However, most have performed poorly over the last decade, thereby dragging down the national economy. The release of the new dataset should encourage further research on spatial inequalities and labour market dynamics.

Impact of Macroeconomic and Financial Indicators on Economic Growth: A Case of Eight Eurasian Countries

This study examines the multifaceted determinants of GDP growth in eight Eurasian countries (Azerbaijan, Kazakhstan, Kyrgyz Republic, Mongolia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan) focusing on the interplay of macroeconomic and financial indicators, labor markets, demographics, and trade. The research aims to provide a comprehensive analysis of the factors influencing economic growth in the Eurasian region and to offer insights for policymakers. Utilizing a panel data analysis approach over a specified time span from 1993 to 2020, the study explores the individual as well as the collective impacts of these factors on GDP growth, considering both country-specific effects and time trends. The study's findings underscore the significance of macroeconomic stability, characterized by low inflation rates and high industrial concentration in domestic GDP, in fostering GDP growth. Furthermore, the analysis highlights the anticipated substantial impact of labor market dynamics, as measured by unemployment levels, on economic growth. The study also underscores the significance of demographic trends, such as population growth and urbanization, in driving GDP growth. Furthermore, it is anticipated that trade openness and financial market development will have a positive effect on GDP growth in the Eurasian region. These expectations underscore the complex nature of economic growth in Eurasian countries, and the empirical results imply that policymakers should consider a comprehensive approach that addresses various factors to promote sustainable economic development in the long run.

Cultivating soft skills in academy: Innovative approaches in education

In an increasingly dynamic labor market, soft skills help individuals adapt to new roles, technologies, and work environments. It is crucial for pre-service teachers to strengthen competencies that enable them to interact more effectively and resolve conflicts, not only on a personal level but also within the educational community. This study aims to identify the soft skills perceived by pre-service teachers in the National and Foreign Languages Pedagogy program at ULEAM, as well as to analyze the benefits of shifting the educational focus towards the development and application of soft skills. The research follows a Socio-Critical paradigm and uses a mixed-methods approach, combining both quantitative and qualitative research. The sample includes 148 students, both male and female, enrolled from the first to the ninth semester, as well as 6 school administrators and 5 high school teachers from private, public, and religious institutions. The instruments used were a soft skills questionnaire and in-depth interviews. The findings show that administrators and high school teachers find the integration of soft skills into the curriculum challenging, particularly when applying active methodologies with the use of technology. Pre-service teachers perceive intercultural competence, adaptability, and decision-making as the most developed skills. The study concludes that teachers recognize their essential role in developing soft skills but require more institutional support, resources, and practical training to enhance their integration.

Evaluasi Pengaruh Ekonomi Pembangunan Program Pemerintah dalam Peningkatan Akses Pendidikan dan Penciptaan Lapangan Kerja

This study encourages the influence of government programs in increasing access to education and job creation in Indonesia during the period 2019 to 2023. Using a mixed method that includes quantitative and qualitative approaches, this study analyzes secondary data and conducts in-depth interviews to understand the social context and community experiences. The results show a significant increase in the number of schools and scholarship programs, which have contributed to increasing graduation rates and reducing dropout rates, especially among students from low-income families. However, challenges such as unequal access to education in remote areas and lack of adequate educational infrastructure still need to be addressed. In addition, there is a positive relationship between education levels and poverty reduction, indicating that better education can increase employment opportunities. Job training programs have also proven to be important in preparing an efficient workforce, but need to be adjusted to the needs of a dynamic labor market. This study emphasizes the need for continuous evaluation of education and job training policies to optimally achieve national development goals and provide real benefits to the wider community.

The transition behaviour of self-employed in the UK and the role of unionisation during 2008 economic downturn

Purpose This study aims to examine the transitions of workers between paid employment and self-employment before and after the 2008 financial crisis, focusing on the drivers behind increased self-employment in the UK and the role of trade union membership in these transitions. Design/methodology/approach Using a long-running panel data set, the labour market is divided into three groups: sustained self-employed, always employed and those who transition between the two. The framework assesses the influence of union membership on these transitions. Findings Long-term paid employees, rather than those transitioning between employment types, are driving increased self-employment. Union membership appears more attractive post-crisis to paid employees, but disengagement from unions may be linked to transitions towards self-employment. Originality/value This research highlights the nuanced role of trade unions in employment transitions and contributes to understanding labour market dynamics post-financial crisis in the UK.

Filsafat Pendidikan Kejuruan: Kontribusinya terhadap Pengembangan Kebijakan Pendidikan Berbasis Kompetensi

The philosophy of vocational education plays a crucial role in supporting the development of competency-based education policies, especially in creating graduates who are ready to face the demands of the world of work. This study uses a literature study method to explore the contribution of the philosophy of vocational education in building relevant, responsive, and equitable education policies. This study identifies several important elements, including the integration of theory and practice, collaboration with the industrial world, and adaptation to the needs of a dynamic labor market. The findings show that the philosophy of vocational education not only supports the development of competency-based curricula but also provides an ethical basis for making educational policy decisions. The results of this study confirm that an approach based on the philosophy of vocational education is able to encourage improvements in the quality of human resources while strengthening global competitiveness. This article recommends the importance of the philosophy of vocational education as a strategic reference in designing vocational education policies, especially in vocational schools, to ensure compliance with the needs of industry and society.

Labour Market Dynamics of Minimum Wage Workers

Labour Market Dynamics of Minimum Wage Workers

Shedding light on truck driver supply and demand: Heterogeneous state‐level recovery of trucking employment following the COVID‐19 employment shock

AbstractIs there a long‐term systemic shortage of truck drivers? We throw light on the underlying context—the demand for and supply of truck drivers—by investigating why states within the contiguous United States showed vastly different rates of recovery of state‐level truck transportation payrolls for May 2020–December 2021 following the negative employment shock brought about by COVID‐19 lockdowns in April 2020. We focus on heterogeneity in the industries that create demand for trucking services: state‐level natural resource extraction, warehousing, and container port activity. We create a state‐level archival data set of truck transportation establishment payrolls from the Quarterly Census of Employment and Wages, which we combine with other archival sources. We test our hypotheses via discontinuous growth curve models estimated using the mixed effects modeling framework. We find states that saw greater declines in natural resource extraction activity had much slower growth in trucking payrolls for May 2020–December 2021, whereas states that saw more warehousing activity growth or were home to large container ports saw faster growth in trucking payrolls. Our work extends theories regarding labor market dynamics in truck transportation and factor market rivalry, in addition to having important implications for managers and policy makers.

The Role of Lifelong Learning in Labour Market Competitiveness

Technological advancements and global economic shifts increasingly necessitate lifelong learning to adapt to dynamic labor market conditions. This study aims to investigate the role of lifelong learning in enhancing labor market competitiveness, professional development, and societal progress, while integrating the principles of the circular economy to highlight sustainable education practices. The research focuses on how continuous skill development fosters resilience and adaptability among workers and supports resource efficiency and sustainability goals. A mixed-methods approach was employed, combining primary and secondary data. The primary research included qualitative interviews with individuals who successfully transitioned through retraining, as well as a quantitative survey targeting employed adults. These methods provided comprehensive insights into the motivations, challenges, and outcomes of lifelong learning. Secondary research involved an extensive literature review and analysis of relevant statistical data to contextualize the findings. The results emphasize the critical importance of lifelong learning in mitigating barriers to employability, such as skill obsolescence and labor market disruptions. The study reveals that integrating circular economy principles into education fosters resource-conscious decision-making and equips workers with the competencies required for sustainable development. Despite obstacles like limited time and financial constraints, participants consistently reported enhanced professional value, increased employability, and greater personal fulfillment through lifelong learning. The added value of this research lies in its interdisciplinary approach, bridging human resource development and sustainability. By linking lifelong learning with the circular economy, the study provides actionable insights for policymakers, educators, and businesses aiming to create a resilient, innovative, and sustainable workforce. This alignment supports not only individual career advancement but also broader societal and environmental goals, contributing to long-term economic growth and stability.

Shocking shortage: the electrical trade crisis in the Eastern Cape, South Africa

This study examines the shortage of professional electricians in the Eastern Cape, South Africa, exploring the root causes, consequences, and potential solutions. Using an interpretivist paradigm and inductive approach, qualitative data from semi-structured interviews with local electricians were analysed through thematic analysis. Findings indicate that inadequate training opportunities and low industry awareness are major contributors to this shortage, leading to an increased presence of unqualified electricians. The analysis identified three primary themes: causes, including insufficient training and awareness; consequences, such as diminished industry standards and rising unqualified practitioners; and potential solutions centred on educational reform and expanded vocational programs. While this study is limited to the Eastern Cape, it provides valuable insights that may inform similar regions, offering actionable recommendations for industry stakeholders. By addressing these training and awareness gaps, stakeholders can help reduce the shortage, enhance workforce skills, and improve overall industry standards. The research underscores the critical need for educational initiatives and awareness campaigns to counteract skilled labour shortages, emphasising that targeted strategies could stimulate sustainable workforce development. These findings contribute to a broader understanding of labour market dynamics in the construction sector, with particular relevance for the sustainable growth of skilled trades.

FUTURE OF UNEMPLOYMENT IN JAPAN: AN ARTIFICIAL NEURAL NETWORK FORECAST UTILISING ARTIFICIAL INTELLIGENCE AND MACROECONOMIC DYNAMICS

Since the unemployment rate is a critical factor that directly affects a country's economic performance and social health, reducing unemployment with effective policies is of great importance for sustainable development and prosperity. Therefore, precise forecasting of the unemployment rate is pivotal to effective policymaking and planning, especially in Japan, where unique demographic structures and economic challenges prevail. This study aims to estimate the unemployment rate in Japan using an Artificial Neural Network (ANN) model with the annual data for the period 1985-2017. Key factors shaping Japan's labour market dynamics, such as artificial intelligence-related technology patent applications, inflation rate, population growth rate, and labour productivity, are used to estimate the unemployment rate. The findings indicate that the Japanese unemployment rate is expected to increase gradually until 2030. This research provides significant insights to the Japanese government and policymakers through a non-linear forecasting model that includes the variable of artificial intelligence, which has not previously been used in the literature.

The Impact of the Integration of International Immigrants on the Cost of Labor in the Labor Market

Objectives: The study aims to analyze the impact of international immigrant integration on labor costs within the labor market. It seeks to examine migration trends, identify the primary socio-economic drivers, and evaluate migration policies and their effects on labor dynamics in various countries. Methods: A systematic approach was employed to categorize immigration types, assess migrant numbers, and evaluate their actions. Comparative analysis of hourly labor costs across countries was conducted to understand the economic impact of migration. The study also examined the influence of geopolitical conflicts, such as those between Russia-Ukraine and Israel-Palestine, on migration trends. Results: The analysis revealed a significant decrease in migration levels during 2020-2021, ranging from 3.8 to 4.8 million migrants, influenced by global economic conditions and geopolitical conflicts. Factors contributing to permanent migration include the pursuit of socio-economic opportunities and the fallout from regional military conflicts. The labor market, education, and investment were identified as critical mechanisms for immigrant assimilation. Moreover, the study highlighted the importance of aligning migrant objectives with host country goals to foster economic progress and improve living standards. Conclusion: The integration of international immigrants significantly impacts labor market dynamics, highlighting the need for effective migration policies. These policies should focus on balancing the socio-economic aspirations of migrants with the developmental goals of host countries to achieve sustainable economic progress and enhance societal cohesion.

Relationship between income inequality, social transfers, poverty, and employment in Ukraine

The impact of social transfers on income inequality and poverty remains a subject of debate, particularly regarding threshold effects, design, and integration with taxation and labor market dynamics. Using a linear regression model, the study analyzes the dependency of the Gini index on the percentage of social transfers in the average household’s monthly resources, the percentage of households with income below the median, and the percentage of the employed populace in Ukraine from 2010 to 2021. The results show that a 1% increase in social transfers in household income reduces income inequality by 0.13%, a 1% increase in employment decreases income inequality by 0.1%, whereas a 1% rise in poverty leads to a 0.34% increase in income inequality. In line with the results from EU and OECD countries, this study confirms that increasing the share of social transfers in household incomes contributes to the mitigation of income inequality in Ukraine. However, this remains valid only if the share of social transfers in households’ total income rises proportionally. The income and expenditure patterns of Ukrainian households, along with the Gini index, reflect poverty, which is partially mitigated by social transfers; however, their effectiveness is constrained by offsetting inflation. The rise in household incomes without a corresponding reduction in poverty suggests that employment is no longer the predominant factor in poverty alleviation in Ukraine. Acknowledgment This paper is funded as part of the project “Financial tools for reducing economic inequality in Ukraine” research project (No. 0124U002254), conducted at the State Organization “Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine”.

Using Big Data in Labor Market Analysis: Theoretical Approaches and Methodological Tools

The article considers the possibility of using big data technologies and large language models to analyze the labor market in the Republic of Belarus. Theoretical approaches using big data have been developed, which implies determining both the possibility of conducting labor market analytics using online sources and effective tools for collecting and processing information on the labor market from online sources. The use of big data and large language models will improve the quality and accuracy of labor market analysis in the republic, and the use of advanced analytical tools will provide a more complete and detailed understanding of the labor market dynamics. The study is based on the analysis of existing theoretical approaches, the practice of using big data and large language models in foreign countries, as well as an assessment of the current capabilities and limitations of using these technologies in Belarus. Machine learning, big data analysis and modeling were used as tools. The results of the study can be used to improve labor market management strategies, as well as to develop employment policies and programs focused on modern challenges and opportunities of the digital economy.

Flexibility and equality: Unraveling the nexus of labor market dynamics and gender equality in developing countries

Recent decades have witnessed notable advancements in gender equality. However, improvement in labor market outcomes remains limited especially for women. On the other hand, regulations related to the labor market have shifted toward greater flexibility. This study investigates the relationship between labor market flexibility and gender equality, aiming to uncover the impact of flexible employment strategies on social inequality. Utilizing cross-country regression models, we analyze the correlation between labor market flexibility indicators and wage equality for a similar work index across 99 developing countries in 2021. The findings indicate that three of the examined indicators exhibit a robust positive correlation with the dependent variable. This suggests that increased flexibility in these areas would potentially reduce gender disparities. Focusing on a wide sample of developing countries, the research implications provide valuable insights for policymakers seeking to address the gender gap in the labor market and promote equal opportunities.

A longitudinal meta-analysis of range restriction estimates and general mental ability validity coefficients: Better addressing overcorrection amid decline effects.

Psychometric corrections can be crucial for obtaining valid operational results, but concerns are rising about potential overcorrections for general mental ability (GMA) validity coefficients. Our two-part study identifies a source of overprediction: using national norms rather than recent local applicant pool variance for range restriction corrections. Study 1 demonstrates increasing homogeneity in Wonderlic occupational applicant pool variance across four data time waves, suggesting they are no longer interchangeable with the general working population, a divergence attributable to a rise in education. Study 2 employs the Morris meta-analytic approach to gauge the impact of using national norms over occupational ones in range restriction. An analysis of 649 GMA validity coefficients from four time waves of General Aptitude Test Battery and Wonderlic data shows a radical drop in corrected and uncorrected correlations, indicating that historical corrected GMA validity coefficients differ from contemporary ones by up to 16-fold (i.e., an R² of 42.3% vs. 2.6%), and range restriction corrections are now minimal in about 75% of cases. This drop in correlations appears due to the filtering effects of increased education, both due to the demands of the knowledge economy and credentialism, where organizations are using college or university degrees as a proxy for GMA. Credentialism is an incredibly inefficient form of GMA assessment, suggesting an urgent societal need to incorporate selection fundamentals more broadly. Altogether, these results indicate that labor market dynamics have a deeper impact on personnel selection than typically appreciated, meaning that many of our estimates have and will eventually age out. (PsycInfo Database Record (c) 2024 APA, all rights reserved).

THE ALGORITHM FOR GENERATING A PROFESSION PROFILE

This paper presents an innovative approach that combines text topic modeling and text generation techniques using large language models. The use of the latent Dirichlet allocation method makes it possible to effectively identify hidden thematic structures in text data arrays associated with various professions. These topic structures are then used as the basis for a large language model that performs the task of ranking and generating a list of the most relevant and promising professions. This approach not only improves the accuracy of identifying professional areas, but also contributes to a deeper understanding of labor market dynamics.

Factors Determining Promotional and Image-Building Activities of Vocational Schools

ABSTRACT This study investigates the factors influencing the promotion and image-building activities of vocational schools in Poland, with a focus on the Podlaskie Voivodeship (one of Poland’s fifteen regions). Using structural analysis and the MICMAC methodology, the research identifies key variables shaping vocational education promotion, including external factors like competition in the education market, generational attitudes of students, and regional economic development, as well as internal factors such as schools’ initiative-taking capacity, awareness of promotional needs, and relationships with employers. Expert stakeholder evaluations are analyzed using a structured methodology, ensuring that identified factors and relationships reflect insights from professionals and stakeholders in the vocational education sector. Significant interdependencies were found among factors, emphasizing the pivotal role of relationships with employers and the adaptive use of social media as a goal-oriented tool for communication. Findings underscore that effective promotion of vocational education requires a strategic approach integrating internal strengths with external collaborations to address stakeholder needs, improve societal perception, and enhance competitiveness. Key recommendations include fostering relational capital, involving employers in defining school missions, and aligning promotional strategies with dynamic labor market demands and technological advancements.

Economic Theory and Artificial Intelligence: A Cross-model Perspective on Labour Market Dynamics

Abstract This study examines the relationship between labour market changes and artificial intelligence, utilising Romer’s Endogenous growth theory, Schumpeter’s Creative destruction, Solow’s Growth model and Becker’s Human capital theory as theoretical frameworks. The purpose of this research is to clarify the multifaceted impacts of artificial intelligence on economic growth, workforce adjustment and the emergence of novel employment trends, focusing specifically on job losses and gains, wage inequalities, and changing skill requirements. Using a structured literature review methodology, the economic implications of artificial intelligence in the labour market were systematically analysed and synthesised. The results suggest that although artificial intelligence significantly enhances productivity and innovation, it has a complex effect on the labour market, causing employment gains in technologically sophisticated industries and losses in sectors prone to automation. The study emphasises strategic policy interventions and pedagogical reforms that maximise the economic benefits of AI while minimising its disruptive effects on employment. Proponents of such policies argue that by cultivating a workforce that is resilient and capable of adjusting to changes driven by artificial intelligence, they can effectively mitigate inequality and safeguard economic stability.

Youth Unemployment in Bhutan: A Meta- Analysis of the Lessons and Perspectives

Unemployment is an economic issue worldwide. Bhutan is no exception; particularly during and after the Covid-19 pandemic the unemployment figures, particularly, youth unemployment rates in Bhutan were surprising. Despite efforts, the issue still looks elusive and wavering with no major reduction in national unemployment figures. To this end, a comprehension of the underlying issue, the nature of the Bhutanese labour market and an understanding contributing factors are essential. In addition, evaluating the government plans and policies is key. Thus, this study has attempted to analyse the data over the past 10 years, of relevant sources such as labour force surveys, policy documents of the Royal Government of Bhutan, and other related studies. The findings are presented as tables, graphs and descriptive statistics and discussed and concluded accordingly. The study identifies three critical elements referred to as the ‘employment triangle’ that significantly influence labour market dynamics in Bhutan. Moreover, they are demographic transformation, work attitudes and educational deficits. Precisely, youth unemployment in Bhutan is influenced by factors, such as demographic transformation (job security, employee protection, absence of employment-rich economy), work attitude (conventional job choice and preference patterns, negative role of society) and educational deficit (skills mismatch, inadequate national HRD planning and support, lack of skills development or school to work transition initiatives).