policy framework for aligning the supply and demand of knowledge-based workforce through promoting the activities of technology-driven businesses in the human resources sector
Abstract
An analysis of labor force statistics for the year 1400 (2021/2022) reveals that over 955,000 university graduates in Iran were unemployed. This means that 13.2% of the total economically active population with higher education degrees were jobless during that year. The unemployment rate among female graduates was even higher, reaching 25%. Overall, unemployed graduates accounted for more than 40% of the country’s total unemployed population.
Despite this, many knowledge-based businesses report a shortage of skilled professionals. Therefore, it is essential to adopt strategies that help balance the supply and demand of knowledge-based human resources.
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Key Concepts Extracted from the Interviews
The analysis of interview data revealed 21 sub-themes related to enhancing the role of technology-based businesses in the human resources sector to bridge the gap between the supply and demand of knowledge-based labor. These were grouped into six main categories:
- Cultural Factors: Low familiarity with digital HR platforms, lack of trust in sharing personal data, unrealistic job expectations, and a preference among younger generations for tech-based work environments.
- Legal and Regulatory Issues: Outdated regulations for employment services, labor laws not aligned with internships or new work models, and the need for legal support for emerging work practices.
- Skills and Career Development: Need for reliable skills assessment, a system to align academic degrees with practical skills, standardized job descriptions, and support for defining career paths through data.
- Business Environment: The necessity to accept diverse recruitment models, the impact of economic conditions on labor demand, and the need for supportive government involvement rather than strict regulation.
- International Collaboration: Limited use of global experiences, sanctions restricting international operations, and challenges in facilitating talent exchange between domestic and international markets.
- Infrastructure and Information Systems: The importance of transparent labor data, strong data privacy protocols, and effective systems for verifying educational and work backgrounds.
Policy Framework for Aligning the Supply and Demand of Knowledge-Based Workforce
This framework proposes government-led policies to balance the supply and demand of knowledge-based workforce by:
- Improving supply through skills training, soft skill education, better labor market data, and collaboration with educational and professional institutions.
- Boosting demand by engaging businesses in training, supporting smart HR systems, and offering incentives for workforce development.
Policy Proposals and Initiatives for the Government
The government should support the alignment of knowledge-based workforce supply and demand by:
- Investing with educational institutions in infrastructure and digital learning platforms for new skills;
- Promoting AI-enhanced platforms to better match skills with job market needs;
- Developing laws and supporting freelance platforms to address new labor market demands, regional equity, and employer needs.
This study was conducted at Mizan Labour & Occupation Thinktank in collaboration with Mohammadhossein Ghamari, Seyyed Mohammad Sahebkar Khorasani and Meysam Narimani in 2022.
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