Skip to main content

Can global labour demand absorb India’s growing workforce?

By N.S. Venkataraman* 
Over the past eleven years, India has claimed significant economic growth, emerging as the world’s fourth-largest economy. With the Government of India continuing to pursue economic and industrial development initiatives, this growth momentum is expected to continue in the medium term.
Parallel efforts are being made to expand educational infrastructure and promote skill development across sectors. These initiatives are intended to improve employability and enable the workforce to access job opportunities both within India and overseas.
Despite these developments, employment generation remains a key challenge. While opportunities exist in both the organised and unorganised sectors, they have not kept pace with the growth of the working-age population. Technological changes such as automation, robotics, and artificial intelligence are also reshaping labour markets by reducing demand for certain traditional job roles. With a substantial proportion of the population consisting of young people seeking employment, labour market pressures are likely to persist unless employment creation expands significantly.
India’s population is currently estimated at approximately 1.4 to 1.5 billion. Although fertility rates have been declining and average family sizes are reducing, overall population growth continues due to demographic momentum. Projections suggest that India’s population could approach around 1.8 billion by 2050. In a country of this scale, generating adequate employment for all individuals in the working-age group presents a structural challenge.
India is now the most populous country in the world. Population density during the 2023–25 period is estimated to be between 480 and 492 persons per square kilometre. This figure is considerably higher than in many other countries, including the United States, Canada, Russia, China, Germany, and Kenya, highlighting the demographic pressure on land and resources.
In contrast, several developed economies, including Japan and many European countries, are experiencing stagnant or declining native populations. China’s population growth has also slowed and stabilised following long-term demographic trends influenced by earlier population policies. These shifts have raised concerns in some countries about the availability of labour to support economic activity, particularly in sectors requiring specialised skills.
As economies modernise and adopt advanced technologies, the demand for skilled and highly skilled workers has increased in many regions. Labour shortages in certain sectors have prompted destination countries, including those in Europe and the Middle East, to rely more on migrant workers to meet economic needs.
In this context, India’s large population and expanding skill development initiatives position it as a significant source of migrant labour. Overseas employment has become an important avenue for absorbing part of India’s workforce, particularly when domestic job creation does not fully meet demand.
India is reported to have the world’s largest emigrant population, with more than 18.5 million people of Indian origin residing abroad in 2024. Indian migrants account for an estimated six per cent of the global international migrant population. This trend is expected to continue as skill-based training expands and global demand for labour persists.
At the same time, migration has become a subject of policy debate in many destination countries. Issues related to social integration, cultural differences, and long-term demographic change are increasingly part of public and political discussions. While migrant labour contributes to economic activity, host countries are also assessing the social and demographic implications of sustained migration flows.
Against this backdrop, India’s population growth and international migration patterns highlight a set of interconnected economic, social, and demographic issues. Addressing domestic employment needs while engaging with global labour markets will remain an important policy consideration for India, even as destination countries continue to evaluate the broader impacts of migration on their societies.
---

Comments

TRENDING

When democracy becomes a performance: The Tibetan exile experience

By Tseten Lhundup*  I was born in Bylakuppe, one of the largest Tibetan settlements in southern India. From childhood, I grew up in simple barracks, along muddy roads, and in fields with limited resources. Over the years, I have watched our democratic system slowly erode. Observing the recent budget session of the 17th Tibetan Parliament-in-Exile, these “democratic procedures” appear grand and orderly on the surface, yet in reality they amount to little more than empty formalities. The parliamentarians seem largely disconnected from the everyday struggles faced by ordinary exiled Tibetans like us.

Study links sanctions to 500,000 deaths annually leading to rise in global backlash

By Bharat Dogra  International opinion is increasingly turning against the expanding burden of sanctions imposed on a growing number of countries. These measures are contributing to humanitarian crises, intensifying domestic discord, and heightening international tensions, thereby increasing the risks of conflicts and wars. 

Dhurandhar: The Revenge — Blurring the line between fiction and political narrative

By Mohd. Ziyaullah Khan*  "Dhurandhar: The Revenge" does not wait to be remembered; it arrives almost on the heels of its predecessor, released on March 19, 2026, just months after the first film’s December 2025 debut. The speed of its arrival feels less like creative urgency and more like calculated timing—cinema responding not to storytelling rhythm but to the emotional climate of its audience. Director Aditya Dhar, along with actor Yami Gautam, appears acutely aware of this moment and how to harness it.

Beyond the island: Top mythologist reorients the geography of the Ramayana

By Jag Jivan   In a compelling new analysis that challenges conventional geographical assumptions about the ancient epic, writer and mythologist Devdutt Pattanaik has traced the roots of the Ramayana to the forests and river systems of Central and Eastern India, rather than the peninsular south or the modern island nation of Sri Lanka.

BJP accounts for 99% of political donations in Gujarat: Corporate giants dominate

By Jag Jivan   An analysis of the official data on donations received by national parties from Gujarat during the Financial Year 2024-25 reveals a staggering concentration of funding, with the Bharatiya Janata Party (BJP) accounting for nearly the entirety of the contributions. The data, compiled in a document titled "National Parties donations received from Gujarat during FY-2024-25," lists thousands of transactions, painting a detailed picture of the financial backing for political parties from one of India’s most industrially significant states.

Alarming decline in India's repair culture threatens circular economy goals: Study

By Jag Jivan  A comprehensive new study by environmental research and advocacy organisation Toxics Link has painted a worrying picture of India's fading repair culture, warning that the trend towards replacement over repair is accelerating the country's already critical e-waste crisis.

Captains extraordinaire: Ranking cricket’s most influential skippers

By Harsh Thakor*  Ranking the greatest cricket captains is a subjective exercise, often sparking passionate debate among fans. The following list is not merely a tally of wins and losses; it is an assessment of leadership’s deeper impact. My criteria fuse a captain’s playing record with their tactical skill, placing the highest consideration on their ability to reshape a team’s fortunes and inspire those around them. A captain who inherited a dominant empire is judged differently from one who resurrected a nation’s cricket from the doldrums. With that in mind, here is my perspective on the finest leaders the game has ever seen.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

‘No merit’ in Chakraborty’s claims: Personal ethics talk sans details raises questions

By Jag Jivan  A recent opinion piece published in The Quint by Subhash Chandra Garg has raised questions over the circumstances surrounding the resignation of Atanu Chakraborty from HDFC Bank , with Garg stating that the exit “raises doubts about his own ‘ethics’.” Garg, currently Chief Policy Advisor at Subhanjali and former Secretary of the Department of Economic Affairs, Government of India, writes that the Reserve Bank of India ( RBI ) appears to find no substance in Chakraborty’s claims, noting, “It is clear the RBI sees no merit in Atanu Chakraborty’s wild and vague assertions.”