Innovating tomorrow: Industry 5.0's role in shaping the workforce and socio-economic development in the sustainable energy transition era

Abstract

The global transition to renewable energy is not merely a technological shift but a profound socio-economic transformation, necessitating a reimagining of workforce roles, skill development, and industrial adaptation. However, existing studies on Industry 5.0 have primarily focused on technological advancements, such as the integration of smart systems, IoT, and AI, without adequately addressing their role in workforce transformation and skill enhancement. In terms of socio-economic development, research has largely emphasized how Industry 5.0 technologies drive innovation, with little focus on how they can be harnessed for broader socio-economic growth. Additionally, methodological gaps exist, as prior studies have not comprehensively employed an integrated decision-making framework to prioritize and structure strategic workforce interventions. Addressing these gaps, this study explores and ranks key strategies for leveraging Industry 5.0 to enhance workforce capabilities and socio-economic progress. The Best-Worst Method (BWM) is utilized to determine the relative importance of these strategies, while Interpretive Structural Modelling (ISM) is applied to analyze their interdependences. MICMAC analysis further categorizes strategies based on their driving and dependence power, culminating in developing a strategic roadmap through integrating ISM results with the Interpretive Logic-Knowledge Base matrix (ILB). The findings underscore the crucial roles of "Policy Governance and Community Engagement" and "Skill Development and Educational Innovation" in facilitating an inclusive and effective energy transition. By offering a structured framework, this study provides actionable insights for policymakers to design targeted workforce reskilling initiatives, develop inclusive industrial policies, and foster public-private partnerships to accelerate the transition to renewable energy.