Digital Trends of the Turkish Labor Market: An Analysis of Online Job Postings

The changing dynamics of the labor market, influenced by technological progress, has become a major focus of academic and policy discourse. The increasing importance of job evolution and automation has underscored the potential for significant employment disruptions. With the emergence of productive AI as a powerful force, its impact on labor markets is profound, offering improved productivity and lower labor costs, but also posing significant challenges. This research addresses the digital skills requirements of the Turkish labor market from 2015 to 2024, using online job postings to examine evolving demands. The study tags 1.54 million job postings collected from open sources into ISCO 2 digits using large language models and provides a comprehensive view of the digital skills landscape across various occupations. The conclusions are that governments should prioritize up-skilling and reskilling initiatives to address skills shortages exacerbated by digitalization by analyzing the differences between labor supply and demand, and mitigate the impact of high unemployment rates and underemployment on potential productivity gains by addressing skills mismatch.