The Impact of Labor Market Structural Issues on National Economic Sustainability: Theoretical-Methodological Foundations and Empirical Analysis
DOI:
https://doi.org/10.69760/gsrh.0250206013Keywords:
Labor market, structural issues, skill mismatch, economic development, human capital, structural unemployment, regional imbalanceAbstract
Against the backdrop of global economic digital transformation and the shift toward knowledge-intensive production models, emerging structural discrepancies in the labor market are becoming strategic constraints on national development. This article systematically analyzes the impact mechanisms of key labor market structural issues—skill mismatches, regional imbalances, the high prevalence of informal employment, and weak education-labor market linkages—on national economic sustainability, employing theoretical-methodological foundations and an empirical approach. The research applies a synthesis of Human Capital Theory, Mismatch Theory, and Institutional Economics. Quantitative and qualitative analyses reveal that these structural imbalances suppress economic growth rates, reduce labor productivity, and constrain the economy's innovation capacity. Empirical findings confirm the negative influence of every 1% increase in structural unemployment on GDP growth performance. Consequently, structural modernization of the labor market, targeted investments in human capital, and strengthened institutional flexibility are identified as core determinants for ensuring long-term national economic development.
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