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The labor market is evolving - will universities be able to adapt?

16 phrase_var_language.ay2 2026, 09:55
The labor market is evolving - will universities be able to adapt?

"In a post-industrial society, Azerbaijani universities must transform from traditional diploma-granting educational institutions into strategic centers that produce knowledge, form human capital, and guide regional economic development."

These words were stated by Zahid Mammadov, Doctor of Economic Sciences and Professor from Azerbaijan, Russia, and Turkey, in a statement to AzEdu.az.

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The professor noted that since the main source of economic growth in the 21st century is not raw materials and physical resources, but intellectual capital, innovation, and technological flexibility, the higher education system must also be renewed structurally and functionally:

"As the Azerbaijani economy is in a transitional phase from an energy-based model to a digital and service-oriented model, universities must transform into flexible institutions capable of responding promptly to the changing demands of the labor market.

In this context, universities must fulfill the function of a regional human capital platform, acting as an analytical center where labor market demand meets and balances with personnel supply. It is necessary to create structural units in every higher education institution that monitor the labor market, track graduates' career trajectories, and prepare skill maps by sector. In the post-industrial phase, the main audience is not only the traditional student contingent but also mature professionals who wish to change their specialization or update their knowledge.

For this reason, universities must expand module-based, short-term, and certificate-oriented continuing education programs and make the lifelong learning model one of their main functions. The financial model of higher education institutions must also change, with continuing education, corporate orders, and research grants becoming important sources of income.

In a post-industrial society, it is not efficient for all universities to be of the same type; therefore, functional differentiation should be carried out within the system, such as research universities, applied technological universities, and regional training centers. Instead of scattering resources, concentration should be ensured in priority areas, and highly qualified doctoral and research schools should be established in selected directions."

Academic autonomy should be expanded in the management model, but this autonomy must be balanced with results-oriented accountability and a performance-based evaluation mechanism

"The selection or appointment of university leadership should be carried out based on criteria such as academic reputation, management skills, and strategic vision.

Expanding joint diplomas and collaborative scientific projects should be one of the main priorities in the direction of internationalization. Digital literacy and artificial intelligence skills should be applied as core competencies across all specializations, and curricula should be regularly updated.

Universities must establish institutional cooperation with industry and business structures, form Industry Advisory Boards at the faculty level, and develop programs based on the demands of the real sector. If structural transformation is not implemented, diploma inflation will increase, graduates' compatibility with the labor market will weaken, and intellectual migration will accelerate.

Conversely, if universities become the leading force of post-industrial transformation, the quality of human capital will increase, the innovation ecosystem will strengthen, and Azerbaijani higher education will integrate into the international competitive environment. Thus, in a post-industrial society, the new model for Azerbaijani universities should be formed not as a conceptual change, but as a structural element of the national development strategy."

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