The Impact of Skill Mismatch on Unemployment in The Artificial Intelligence (AI) Era: A Systematic Literature Review from an Islamic Economic Perspective

Abstract

Advances in Artificial Intelligence (AI) have transformed workforce skill requirements and may widen the gap between worker competencies and industry needs (skill mismatch). Research integrating the causes, impacts, and mitigation strategies of skill mismatch with an Islamic economic perspective in the AI context remains limited. This study aims to synthesize the causal factors of skill mismatch, its impact on unemployment, and mitigation strategies from an Islamic economic perspective. A Systematic Literature Review was conducted following the PRISMA 2020 guidelines, using Scopus data via Publish or Perish for 2020–2026. Of 108 articles identified, 15 met the inclusion criteria. Three main themes emerged: the gap between education and industry needs; skills gaps driven by rapid technological change and low digital literacy; and limited upskilling, reskilling, and labor market information. These conditions contribute to rising structural unemployment, expanding informal employment, and declining productivity. The novelty of this study lies in integrating skill mismatch, AI transformation, and Islamic economics within a single analytical framework. From the maqasid al-shariah perspective, continuous competency development supports hifz al-mal and human resource quality. The findings highlight the need for adaptive education and labor policies and stronger upskilling and reskilling efforts to build an adaptive, competitive workforce.