The World Economic Forum’s Jobs Report released on January 8th, 2025, forecasts a global increase in net jobs. The report anticipates the creation of 170 million new jobs and the displacement of 92 million jobs by 2030, resulting in a net increase of 78 million jobs. While specific figures for India are not detailed, the global trend suggests a positive employment outlook, provided there is a concerted focus on upskilling and reskilling the workforce to meet evolving job demands.
The report underscores the importance of adopting proactive measures in education, skilling, and adapting to technological advancements, to fully leverage the opportunities presented by this transformative phase in the global job market. Another report published by the Organisation for Economic Co-operation and Development (OECD), portends that India will need to overcome labour market challenges, including the creation of 8 million non-farm jobs every year, and sustain strong per capita growth to achieve its target of becoming an advanced economy by 2047. In this article we analyse the key challenges that India must overcome and the immense opportunities that present themselves before the nation to secure its place in the sun for in the words of Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, “The future of work is not predetermined—it is ours to shape.”
Challenges to Overcome for Workforce Transformation
India faces significant macroeconomic risks from external factors, including a weakened global economic environment, volatile commodity import prices, and escalating geopolitical tensions driven by rising protectionism. These challenges threaten economic stability and growth, making it imperative for India to adopt robust strategies to build resilience and mitigate external vulnerabilities effectively.
Non-farm Employment Agriculture still occupies about 45 per cent of the Indian labour force. Greater focus on youth employment in non-farm sectors could help reduce the 23.5 per cent share of the youth population that is neither in employment, education, or training. Expanding opportunities in manufacturing and services is vital to addressing this gap.
Education and Skilling Stronger performance in education and skill development will upskill the population and make them employable. A substantial effort is also needed to ensure women are not left behind. Addressing gender-based employment and pay scale gaps is essential to leveraging the full potential of a sizable section of the population.
Labour Market Regulations There is a pressing need to create fertile ground for the growth and development of businesses and entrepreneurship. Laws should be reformed to enhance ease of doing business, which can lead to the creation of formal jobs and reduce labour informality. However, these reforms must also expand social security nets and pension coverage to support workers.
Opportunities Driving India’s Workforce Growth
India’s dynamic workforce and growing economic landscape provide a fertile ground for transformative opportunities. Leveraging advancements in technology, sustainable practices, and an expanding healthcare sector, the country is well-positioned to drive substantial workforce growth. These opportunities, if effectively harnessed, can pave the way for a more prosperous and inclusive future.
Technological Prowess – India’s strong position in technology services and the greater utilisation of AI could spur faster growth than projected. Indian employers are at the forefront of adopting artificial intelligence and driving technological transformation. Positions such as Big Data Specialists, FinTech Engineers, AI & Machine Learning Specialists, Software & Applications Developers, and Security Management Specialists are expected to experience substantial growth. India’s efforts to equip its young workforce with requisite technical skills are pivotal to harnessing this potential.
Green Transition – Climate-mitigation efforts are projected to be a significant driver of job growth in India by 2030. The emphasis on sustainable practices will create new employment opportunities, particularly in sectors aligned with environmental sustainability. Sustained high economic growth will facilitate the large energy investments needed to achieve net-zero greenhouse gas emissions.
Care Industry – Rising incomes in India will enhance other dimensions of well-being, including longer life expectancy, which will significantly boost the healthcare industry. There is a tremendous opportunity to leverage skilled professionals to provide geriatric support, enhance the wellness industry, and further develop medical tourism. These sectors can cater not only to India’s aging population but also to the global demand for healthcare services.
India stands at a crucial juncture, with both significant challenges and unique opportunities shaping its labour market and economic trajectory. The global trends outlined in the WEF Jobs Report highlight the importance of addressing structural challenges such as macroeconomic risks, labour market regulations, and education gaps to foster a thriving job market.
India’s advantages in technology, sustainability, and healthcare offer promising avenues for growth. By leveraging these strengths, India can create a more inclusive and dynamic economy. Proactive policy measures, investments in education and skilling, and reforms aimed at enhancing ease of doing business will be essential to achieving this vision.
As the nation marches toward its goal of becoming an advanced economy by 2047, a commitment to inclusivity and sustainability will be critical. India’s ability to adapt to global trends while addressing domestic challenges will determine its success in shaping a future of work that benefits all segments of its population.
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