Note4Students
From UPSC perspective, the following things are important :
Mains level: Demand for Skilled workers;
Why in the News?
The demand for skilled workers will soon be higher than the supply, and India must act quickly to meet the needs of important regions.
What are the Geographic regions and their demands?
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Why is the demand for skilled workers expected to exceed the supply in the near future?
- Rapid Technological Advancements: Emerging technologies such as artificial intelligence (AI), machine learning, and cybersecurity are evolving swiftly, creating a need for specialized skills that the current workforce lacks. Example: The global AI market is projected to reach $266 billion by 2027, growing at a compound annual rate of 33.2%.
- Industry-Specific Skill Gaps: Certain industries are experiencing rapid growth, leading to specialized skill shortages that the existing workforce cannot meet. Example: The International Renewable Energy Agency (IRENA) estimates that by 2030, the renewable energy sector could provide up to 30 million new jobs worldwide.
- Aging Workforce and Retirements: A significant portion of the skilled workforce is approaching retirement age, leading to a loss of expertise and creating vacancies that are difficult to fill. Example: In the United States, the manufacturing sector faces a potential shortage of 2.1 million workers by 2030 due to retirements and a lack of new entrants with the necessary skills.
- Mismatch Between Education and Industry Needs: Educational institutions often do not align curricula with the evolving demands of industries, resulting in graduates lacking the practical skills required by employers. Example: In India, a study by the National Skill Development Corporation (NSDC) revealed a demand for 103 million skilled workers, while the current supply is only 74 million.
What are the existing barriers?
- Complex Visa Processes: Lengthy visa approval times and restrictive work permit policies hinder skilled worker migration. According to the Global Talent Competitiveness Index (2023), India ranks 92nd in the ability to enable and attract global talent, reflecting challenges in cross-border workforce movement.
- Exploitation of Migrant Workers: Illegal recruitment agencies engage in wage theft and exploitative practices. As per the International Labour Organization (ILO), approximately 25 million people worldwide are victims of forced labour, with South Asia being a major source of trafficked labour.
- Non-Recognition of Qualifications: Many Indian professional degrees are not accepted in key global markets. A FICCI-KPMG study reports that 53% of Indian professionals face underemployment abroad due to non-recognition of their qualifications, particularly in medicine and engineering.
- Limited Language Proficiency: Inability to communicate effectively impacts job performance and integration. The European Commission (2022) found that 40% of non-EU migrants face employment challenges due to language barriers, particularly in sectors like healthcare and customer service.
- Mismatch Between Skills and Market Needs: Rapid technological advancements outpace current training programs. According to the World Economic Forum (WEF) Future of Jobs Report (2023), 44% of core skills required across industries will change by 2027, leaving a global shortfall of 85.2 million skilled workers by 2030.
What are the existing strategies?
- Migration and Mobility Partnerships: India has established agreements with countries like Germany and Italy to facilitate the movement of students, professionals, and skilled workers. These partnerships aim to streamline visa processes and recognize professional qualifications, thereby promoting bilateral exchanges.
- Digital Platforms for Emigrant Support: The Indian government has upgraded the eMigrate portal to version 2.0, integrating features like 24/7 multilingual helpline support and faster feedback mechanisms. This platform ensures transparency in recruitment and safeguards the welfare of Indian workers abroad.
- Skill Development Initiatives: Through programs like the National Skill Development Mission and the Skill India program, India focuses on training its workforce in emerging technologies and sectors. These initiatives aim to align domestic skills with global market demands, enhancing employability abroad.
- International Collaboration on Education and Training: Workshops and collaborative projects with entities like the European Union have been conducted to strengthen student mobility and the use of educational consultants. These efforts aim to facilitate the international movement of students and young professionals.
- Bilateral Trade Agreements Enhancing Labor Mobility: India is actively pursuing free trade agreements, such as the one with the United Kingdom, which include provisions for labour mobility. These agreements aim to reduce barriers for Indian professionals seeking opportunities abroad.
What is India’s advantage?
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Way forward:
- Strengthen Skill Recognition and Mutual Agreements: Expand bilateral agreements for mutual recognition of qualifications to reduce skill mismatch and underemployment, especially in high-demand sectors like healthcare and technology.
- Enhance Digital and Legal Safeguards for Migrant Workers: Improve digital platforms like eMigrate for transparent recruitment, and enforce stricter regulations against exploitative practices to protect Indian workers abroad.
Mains PYQ:
Q Examine the role of ‘Gig Economy’ in the process of empowerment of women in India. (UPSC IAS/2021)
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