Coping With Uncertainty in the Turkish Labor Market: Exploring the Potential of the Danish Flexicurity Model for Reskilling and Upskilling

Introduction

In the contemporary and dynamic global landscape, the world economy finds itself at a critical crossroads, where the convergence of rapid technological progress and pressing global crises has reached a pivotal point. The rapid advancement of technology has transformed all economic, social, and cultural dynamics worldwide, and this trend is likely to continue reshaping our future. Simultaneously, the world faces multidimensional challenges, including climate change, health crises, and economic downturns. These crisis and challenges necessitate proactive measures, strategic planning, and collaborative efforts across various economic actors to address and be prepared for uncertainty effectively.

Understanding all the consequences of technological advancement is quite a complex issue, requiring collaborative efforts from various disciplines, ranging from natural sciences to social sciences. From the social sciences perspective, technological advancements influence modes of production, types of accumulation processes, and consumption patterns. As we examine technological advances, it can easily be said that the most significant impact on the labor market has been observed from the first industrial revolution until today. The widespread use of machines, gradually replacing an increasing amount of human muscle power, has played a pivotal role in this evolution. Currently, there is much discussion regarding the possibility that technologically more complex machines and robots may eventually replace human labor. It can be stated that there is the transformative impact of technological advancements especially in terms of industrial robots, which are revolutionizing production processes and reshaping traditional job roles, must be carefully navigated (Acemoglu & Restrepo, 2020). There is an emerging literature on whether industrial robots can increase employment and wages by creating new occupation opportunities or can decrease employment and wages by creating a substitution effect between labor and robots especially for low and medium skills jobs (Goos et al., 2014; Wang et al, 2022; Li, 2022), which defined as a skill polarization by Michaels (et al., 2014). While the effects of robots on labor markets remain unclear, it is evident that labor markets need restructuring in line with the new needs created by technological advancements, especially within reskilling and upskilling the workforce. According to the Future of Jobs Report (2023) published by the World Economic Forum, approximately 50% of employees will require reskilling by 2025 as technology adoption continues to rise. Additionally, nearly 100 million jobs are projected to emerge by 2025, better suited to the evolving division of labor between humans, machines, and algorithms. In this respect, reskilling and upskilling of the workforce are crucial to creating resilient economies and inclusive growth strategies for all countries.

Yet, another question has come to the agenda: What kind of reskilling and upskilling is needed? Is it enough to reskill and upskill the workforce based on technological requirements? The answer is probably no. As mentioned before, on the other hand, the consequences of climate crises and the imperative of transitioning to a low-carbon economy present additional challenges that must be promptly addressed. The emergence of green technologies and green jobs offers potential avenues for economic and social advancement. The effort to transition to an environmentally sustainable economy will also bring about significant changes in the job market. The transition towards green technologies will bring about various shifts in the job market. This encompasses the emergence of new green jobs and industries, along with adjustments in existing roles, requiring the acquisition of fresh skills and practices. Additionally, there will be a reduction in jobs linked to carbon-intensive activities. While the positive impacts on employment and economies are eagerly anticipated in this green transition, it's crucial to acknowledge that there may also be adverse effects on specific jobs and employment (Sharpe & Martinez-Fernandez, 2021). In these circumstances, there is an urgent need to think and act about the opportunities and challenges in the 21st-century world economy. Considering these two critical forces, it becomes crucial to adopt a comprehensive and interdisciplinary approach that aligns the transformative potential of technology with the imperatives of crisis response. This necessitates a deep understanding of the interplay between technological advancements and global crises, allowing for the identification of synergistic solutions that address economic, social, and environmental concerns.