New Takamol Research Paper Outlines Policy Priorities for the Global Labour Market Transition to a Capability Economy

The paper examines how AI, digital transformation and evolving workforce models are changing labor markets, and sets out six priorities for policymakers.

REPORTS AND CASE STUDIES

ME-HR & Learning

9/20/20262 min read

A new research paper published by Takamol Holding highlights a structural shift taking place across global labor markets, as economies gradually move away from reliance on traditional employment models towards a new one centered on proven capabilities and skills as key drivers of productivity and growth. This shift is being accelerated by rapid advances in artificial intelligence and digital transformation.

Titled “Policy Priorities for the Global Labour Market Transition to the Capability Economy”, the paper presents an integrated policy framework to support governments and policymakers in adapting labor market systems to rapidly evolving economic and technological developments.

The paper draws on a number of global indicators that demonstrate the scale of this transition. More than 58% of the global workforce currently operates outside formal employment, while artificial intelligence is expected to create 170 million new jobs by 2030, alongside the displacement of 92 million existing roles. At the same time, nearly 59% of the global workforce is expected to require reskilling to meet the changing demands of the labor market.

The paper explains that today’s labor market systems were built around an economic model closely tied to traditional employment for more than a century, with the employer-employee relationship underpinning social protection, taxation and official statistics. However, this model is facing growing challenges as flexible work and digital platforms expand, and skills increasingly take precedence over traditional qualifications. This creates a need to place individuals and their capabilities, rather than the jobs they hold, at the center of the economic system.

The paper notes that the impact of artificial intelligence extends beyond job creation and displacement. It is also reshaping the relationship between work, productivity and the distribution of economic value, requiring more adaptive policies that strengthen human capabilities, ensure the sustainability of social protection and balance innovation with economic fairness.

Against this backdrop, the paper proposes six interconnected priorities:

Establishing skills as a primary economic signal
Treating workforce capacity as strategic infrastructure
Governing AI as a workforce multiplier
Aligning fiscal systems with capability-based economies
Design portable and adaptive protection systems
Build computational labor intelligence systems that use real-time information to support policymaking.

It also stresses that a successful transition towards a capability economy will require a more integrated, human-centered approach to work, social protection, finance and measurement. This would enable countries to respond more effectively to demographic and technological shifts while strengthening the future competitiveness of their economies.

The publication forms part of Takamol Holding’s ongoing efforts to generate knowledge and develop forward-looking perspectives on labor markets, while contributing to international discussions on economic and labor market policy. Through applied, data-driven research, Takamol aims to support the development of labor markets that are more flexible, sustainable and better equipped to respond to global change.

To read the full research paper:

https://takamolholding.com/en/publications/policy-priorities-for-the-global-labor-market-transition-to-the-capability-economy

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