As global labour markets undergo rapid transformation driven by ageing populations and accelerated digital adoption, India is uniquely positioned to become a key source of skilled workers, according to an analysis by Crisil Intelligence, quoted by ANI.“The global labour market is undergoing rapid transformation, with demand for skilled workers rising sharply across advanced as well as emerging economies because of ageing populations and businesses looking to adopt and scale up digitalisation,” the report noted. It further stated, “India to become a global employment epicenter…, the global labour market is undergoing a contradictory situation, where some countries are experiencing rising unemployment even as employers struggle to find skilled workers.” The analysis highlighted a striking paradox: while several countries are grappling with rising unemployment, employers across regions are struggling to find skilled talent. This mismatch, Crisil observes, stems largely from demographic variations between nations. In advanced economies, falling birth rates and increasing life expectancy have led to ageing populations and a rising dependency ratio, intensifying workforce shortages. In contrast, developing and middle-income countries are witnessing population growth and a surge of young people entering the labour force. According to the International Monetary Fund’s World Economic Outlook, by 2050, these nations are expected to contribute nearly two-thirds of all new entrants to the global workforce. India’s demographic advantage is particularly pronounced, with 65 per cent of its population under the age of 35. This gives the country a significant opportunity to address global skill shortages, potentially becoming what Crisil terms a “global employment epicenter.” However, the report also flags serious challenges within India’s labour ecosystem. Despite a growing working-age population, issues of under-qualification and low formal skill training persist. The Periodic Labour Force Survey reveals that less than half of Indian graduates are considered employable, and only 4.4 per cent of the workforce has received formal vocational training. This skill gap continues to hinder India’s ability to fully capitalise on its demographic dividend.
