The Dual Labour Market theory explains the division of the workforce into two distinct segments: the primary and secondary labor markets. The primary labor market consists of stable, well-paying jobs with benefits, career growth opportunities, and job security, typically found in industries like corporate management, technology, and skilled manufacturing. The secondary labor market includes low-wage, temporary, or unstable jobs with limited benefits and career progression, often seen in contract work, gig employment, blue-collar roles, and facility management services.

For businesses managing contract workers, gig employees, and blue-collar workforce, understanding the dual labor market is crucial for optimizing workforce planning, ensuring fair compensation, and maintaining compliance with labor laws. Companies leverage HRMS platforms, workforce analytics, and payroll management systems to bridge gaps between labor segments, enhance job stability, and offer skill development opportunities. A well-balanced labor strategy improves employee retention, workforce efficiency, and overall business sustainability.