Using AI to solve labor market matching problems

Abstract

How to maintain or even increase productivity growth or economic growth? How to organize a future-proof labor market? All (developed) economies face major changes due to ageing, technologization and digitization, the energy transition and climate crisis. These processes require substantial investments and innovations in human capital and labor market institutions. The availability of sufficient and well-qualified personnel is key but many economies face labor shortages in all occupations. In this paper, we view this as a matching problem and suggest a novel labor market analytics approach. Taking the Netherlands as an example, our results define chains of transitions between skill-related occupations that eventually reduce shortages. This has consequences for all institutions and organizations on the labor market.