The security industry is increasingly suffering from a shortage of skilled workers and young talent, which poses a significant challenge. This situation may be linked to the ongoing academisation of society and the associated structural changes in the labor market. In 2024/2025, this issue will be discussed by various economists and other stakeholders within the economic landscape, in the context of Joseph Schumpeter’s theories. It is worthwhile to consider Schumpeter’s ideas in this context to better understand the causes and potential solutions to the shortage of skilled workers in the security industry.
The Academisation of Society and Its Impact on Labor Markets
The growing academisation of society has led to an increasing number of young people entering higher education and pursuing advanced degrees across various sectors. This trend is reinforced by the societal expectation that education is the key to a better life, prompting a shift of interest and resources away from practical trades and towards academic careers. A significant portion of the labor market now expects highly skilled professionals to come from academic backgrounds, especially in technology, business, and service sectors.
However, this shift has created a shortage of skilled professionals for occupations that require on-the-job training or more trade-based skill sets—and the security industry is a prime example. Security officers require specialized training that does not necessarily demand an academic background, but rather practical skills and a deep understanding of security strategies and techniques.
The Skills Shortage in the Security Industry
The skills shortage in the security industry can be partly explained by the trend toward academisation. More and more young people are striving for academic qualifications and focusing on professions that are considered more prestigious or financially rewarding. This results in a shortage of qualified specialists for professions that are often viewed as less prestigious.
Additionally, the increasing bureaucratisation and technologisation of the labor market have led workers to pursue specialized but often bureaucratic jobs. For many young people, jobs in the security sector are not as attractive because they are perceived as ‘inferior’ or less challenging, especially compared to professions requiring academic training, such as in engineering, IT, or finance.
Schumpeter and the Security Industry
Schumpeter might view this development as a form of creative destruction, in which the labor market is becoming increasingly specialized, and industries such as the security sector risk falling out of sync with the broader trend of economic modernization. He would likely see this restructuring as a painful but ultimately necessary transformation, which strengthens capitalism in the long term by shifting focus toward new, knowledge-based sectors and industries.
However, Schumpeter would also question the potential of such a transformation: If innovation and technological progress are concentrated in areas such as IT and finance, this could lead to the devaluation of industries like security, which have traditionally relied on practical, hands-on expertise rather than theoretical knowledge. In this sense, the strong emphasis on academic qualifications and technological innovation could result in practical and manual occupations being seen as increasingly irrelevant.
Possible Solutions and Ways Forward
In the current debate about the shortage of skilled workers in the security industry, Schumpeter’s ideas on creative destruction can also offer solutions. The industry could respond to the need for innovation and reorganization by attempting to free itself from academic dominance and bureaucratisation, developing a stronger focus on practical training.
One potential approach is to make security professions more attractive by presenting them as innovative and dynamic, similar to academic professions. For example, the security industry could make greater use of modern technologies like artificial intelligence, drones, and cybersecurity to modernize the field and appeal to young, tech-savvy individuals. In doing so, the industry could position itself as a highly specialized and qualified sector that meets the demands of the modern workforce without being exclusively oriented towards academic education.
Conclusion
The shortage of skilled workers in the security industry and the increasing academisation of society shed light on the complex challenges facing capitalism and labor markets in the 21st century. Schumpeter’s theories of creative destruction and economic transformation remain highly relevant in this context. His ideas, especially those expressed in Capitalism, Socialism and Democracy (1942), which suggest that increasing academisation could lead to the emergence of an underemployed academic precariat, provide valuable insights.
Schumpeter predicted that the academic system—seen as the center of critical intellectuality—could undermine capitalism by producing a generation of overqualified but underemployed workers, unable to integrate into the evolving labor market. In the case of the security industry, this concept is apparent today: the rise of academic degrees and the shift from practical to academic professions have resulted in a shortage of qualified specialists in many fields that rely on hands-on, security-related occupations. Schumpeter’s warning that an intellectual and bureaucratic elite could suppress capitalism’s drive for innovation is clearly visible in this development.
However, Schumpeter also proposed a solution: universities and colleges can reduce academic precariousness by fostering innovation and entrepreneurship. By embracing creative destruction and adapting their curricula to meet the changing demands of the job market, universities can better prepare graduates for the challenges of a dynamic workforce. Academic institutions should integrate interdisciplinary approaches and develop programs that foster entrepreneurial thinking and practice-oriented skills—not only in business schools but across all disciplines.
Such an approach would not only alleviate the shortage of skilled workers in fields like the security industry, but also address academic precariousness by providing students with the tools to create their own jobs, rather than merely seeking existing ones. This type of education would equip students with theoretical knowledge while preparing them for the practical realities of an ever-changing labor market. Schumpeter repeatedly emphasized the importance of entrepreneurs as ‘innovators,’ who create new economic structures and disrupt existing markets. By focusing more on entrepreneurial programs and flexible educational models, universities could cultivate the creative, entrepreneurial spirit needed in traditionally less innovative sectors like the security industry.
In addition to university-based education, however, the importance of in-company training, dual education models, and ongoing workplace education should also be given more attention. These formats provide a crucial bridge between academic theory and practical application, ensuring that skilled workers not only acquire knowledge but also gain practical, market-relevant experience. Dual education enables vocational skills to be learned directly in the workplace, fostering a closer connection between economic needs and workforce training. At the same time, continuous professional development ensures that skilled workers can adapt their abilities to the evolving demands of the labor market.
The security industry, like many other sectors, requires not only academically trained professionals but also highly skilled practitioners with deep practical knowledge. Schumpeter recognized that entrepreneurs and innovators emerge not only from universities but also from the practical sectors of the economy. A stronger focus on on-the-job training and internal development programs would help companies build a workforce capable of meeting the specific demands of their industry. This is especially important in sectors like security, where technological developments and complex requirements demand both expertise and hands-on experience.
Overall, Schumpeter’s analysis of capitalism and the role of academia continues to provide valuable insights into today’s challenges. The security industry, like many other sectors, faces the challenge of bridging the gap between an increasingly academic society and the practical, often non-academic demands of the labor market. To address this challenge, both universities and industry must adapt by embracing Schumpeter’s ideas of flexibility, innovation, and entrepreneurship. Only in this way can the imbalance in the labor market be corrected, and the innovative power of capitalism be sustained in the long term. The key to alleviating the skilled labor shortage and promoting innovation in fields like the security industry lies in integrating academic education, practical experience, and continuous professional development.
Joseph Schumpeter (1883–1950) is best known for his seminal work on the dynamics of capitalism and the theory of creative destruction, which he saw as the primary driver of economic progress. Schumpeter described capitalism as a system that constantly renews itself through innovation and technological change, destroying existing economic structures and labor markets in the process to create new ones. These innovations are driven by entrepreneurs or ‘innovators,’ who challenge the status quo and open up new markets.
In his later works, Schumpeter also expressed concerns that increasing bureaucratisation and the emergence of large, rigid corporate cultures could hinder capitalism’s ability to innovate. This development might coincide with a growing academic society, where the focus shifts from practical skills and manual labor to theoretical training. In this context, the security industry could provide an interesting case study of Schumpeter’s theories
