An Ideal Time For India To Capitalize On The Global Labor Shortage
Take advantage of the current workforce crisis globally to solve India’s unemployment woes. As a result of the epidemic, almost all major developed countries are struggling with an acute shortage of workers.
These individuals are getting allowances from their governments and are not eager to return to work. As a result of the ageing of their current workforce, the country is also facing an ageing workforce.
The Indian government should seize this opportunity to export and deploy its young workers worldwide. A large proportion of the Indian population is under 25 years old, the largest workforce in the world for the under-25 age group.
In the private and public sectors, respectively, there are 2.20 lakh vacancies on the Union Ministry of Labour and Employment portal, which has 13 million active job seekers.
India is ranked fifth in the world by the International Monetary Fund (IMF). While the Indian economy continues to create fewer jobs, the demographic dividend is not leveraged to its full potential.
Only India has faster growth in supply than demand in its labor force. There is an opportunity for this young workforce to be absorbed globally.
In Punjab, 61.6% of the unemployed are matriculated or older. One-fourth of them are professionals, including diploma holders, engineers, and teachers.
As many Punjabi youths migrate in search of jobs, there are tremendous opportunities for them in the US, Europe, Canada, and other countries. It is well known worldwide that Punjabis work hard and are dedicated to their jobs.
The promise by the Aam Aadmi Party (AAP) government to accelerate abundant job opportunities in the state is applaudable. Although the plan is long-term, it aims to achieve long-term results.
Many skilled workers are needed, including truck drivers, construction workers, farm laborers, IT professionals, cooks, chefs, plumbers, carpenters, health care workers, and managers and supervisors of retail food services.
Huge Employment Opportunities
EU officials predict that the EU workforce will shrink by 96 million workers by 2030 without migration – more than Germany’s current population.
Unrealized revenue could total $8.452 trillion if the global skilled workforce shortage persists by 2030, equivalent to Germany’s and Japan’s combined GDP.
The workforce crunch is significantly affecting the global financial services industry, technology, and China’s position as a central manufacturing hub.
With the help of new technologies such as artificial intelligence and the Internet of Things (IoT), developed countries’ aging workforces are trying to keep the manufacturing and services sectors going.
Still, this fusion and aging have limitations as well. A burgeoning working-age population in India is the only reason it can expect a surplus of young workers.
Europe
The lingering Ukraine-Russia war is causing multiple challenges in Europe. Unrealized revenue is $1.906 trillion due to a 14.3 million-strong labor shortage.
Skills shortages in Europe will result in an unrealized output of $1.323 trillion by 2030, due to skilled workforce deficits, particularly in financial and business services.
EU membership offers free labor movement benefits, but they may not solve the skilled workforce shortage in the EU.
USA
The USA is facing one of the most alarming shortages of young workers. As the baby boomers reach retirement age, America’s population is multiplying.
A labor shortage could result in the United States losing $1.748 trillion in unrealized revenue by 2030.
In 2030, the skilled worker deficit is forecast to be over 6.5 million. Sectors such as financial and business services will drive demand for workers.
Across industries, from transportation to health care and social assistance, food and hospitality, and manufacturing to wholesale, there are various job opportunities.
Retailing and wholesale trade are facing a 70% labor shortage, financial services are experiencing a 20% shortage, and leisure and hospitality are facing a 35% shortage.
As a result of the pandemic, 1.4 million manufacturing jobs were lost. A shortage of entry-level workers has plagued the industry for years. A US Bureau of Labour Statistics report projects 2,31,100 truck driver openings yearly.
Canada
Currently, Canada is suffering from a significant shortage of workers. The number of young workers to replace those over 55 is insufficient. The pandemic led to many of them retiring.
Getting government assistance, they are not eager to return to work. Hotels, restaurants, and bars are also having difficulty recruiting skilled workers.
Among the sectors of the Canadian economy, truck transportation has the second-highest vacancy rate.
Japan
Japan faces an acute shortage of skilled workers. With immediate labor shortages, it may struggle to maintain its spot among the world’s top manufacturers. By 2030, Japan’s revenue will fall to $194.61 billion because of a labor shortage.
Several factors contribute to Japan’s shrinking workforce pool, including a low birth rate and tight restrictions on immigration. Its population and labor force participation levels will decline by 2020.
Germany And Others
Manufacturing labor shortages will leave Germany with the second-largest unrealized output after Japan, where deficits are already increasing. 2.4 million workers are needed in Germany, one of the world’s leading manufacturing hubs.
If there are 10 million vacancies in Germany by 2030, it is estimated that Germany will miss out on $77.93 billion in unrealized revenue.
As much as 80% of Hong Kong’s workforce will be unemployed by 2030. There may be a 61% labor shortage in Singapore.
In addition to being one of the world’s most populous countries, Brazil will also face labor shortages across all skill levels, resulting in 13% of its GDP that is left unrealized.
The Need Of The Hour
We must intensify government efforts to prepare our youth with IELTS (International Language Testing System) and school skills. Standards should be established and skill courses certified by IOS.
To facilitate the smooth movement of job seekers overseas, the Ministry of External Affairs (MEA) should play a proactive role. Their exploitation by travel and immigration syndicates will be prevented.
To create a job platform, the MEA can coordinate with the MEAs, recruitment agencies, and industrial chambers of respective countries.
Besides guiding them, this platform should also help them find jobs that match their abilities. We can provide overseas job opportunities to more than 80 million people if we work innovatively and inclusively.
As a result, millions of households will be able to reduce their financial stress and will stimulate the economy. Leveraging global employment opportunities for Indian youths is simply a matter of stepping up and creating an interconnected ecosystem.
edited and proofread by nikita sharma
