Context:

India surpasses China as the world’s most populous country in demographic composition, with a staggering 65 percent working-age population having an average age of 28 years old. 

Benefits of demographic advantage:

• It has the potential to propel the nation towards remarkable socio-economic progress.
• It has the ability for transformative global impact. 

How to reap the benefit of demographic advantage?

• To equip our working population with employable skills and knowledge that meet the requirements of the globalized labour market. 
• Skill development in educational institutions for improving employment outcomes and higher productivity leading to faster and more sustainable economic growth.

Skill Gap & Education System:

• The International Labour Organization (ILO) has projected that India will face a 29 million skill deficit by 2030. 
• India’s education system is unable to provide the necessary skills to its growing workforce. 
• Many young people lack the required qualifications and vocational training to find suitable jobs.

Rise in Employability & Opportunities:

• India Skills Report 2023 reveals a rise in employability of 52.8% with women and men at 47.2%. 
• Women surpassed men in employability because, in the post-covid era, nursing, beauty and wellness and other soft skills showed the highest employability rates among the women. 
  • Not only for women but for men also the beauty and wellness sector has unlimited potential in terms of domestic and global markets. 
  • Growth potential in the beauty and wellness market in India, indicating domestic and global opportunities.

Focus on the employability of women:

• The companies have also adopted new recruitment strategies centred around soft skills like communication, teamwork, and emotional intelligence.
• The Department of School Education and Literacy is executing the rationalization of the School Education initiative under ‘Samagra Shiksha'(holistic education) to integrate vocational education with general academics in secondary and senior secondary schools. 
• The goal is to enhance youths’ employability, entrepreneurial skills, work environment exposure, and career awareness. 

Unique opportunity:

• India has a unique opportunity to capitalize on its 48 percent population under the age of 25, and the working-age population is forecast to hit more than 1 billion in the current decade. 
• An IMF report suggests that demographic dividend could add up to 2 percentage points to per capita GDP growth per annum. 

Lessons from Developed Countries:

• Singapore and South Korea demonstrate the potential for leveraging the demographic dividend to achieve remarkable economic growth by implementing forward-thinking policies and programs that empower the youth in education and skill development.

Strengthening Technical and Vocational Education & Training (TVET) Programs:

• The world of work is changing faster than the workforce, with technological developments, automation, changes in consumer behaviour, and widespread remote working patterns rapidly changing how and where we work. 
• Learning from Finland’s TVET system: Its strong collaboration between educational institutions, the private sector, and the government, ensures that the curriculum is tailored to meet the current and future needs of the market, thereby enhancing the employability. 

Conclusion:

• India can benefit from adopting a similar approach. The workforce stays competitive and adapts to the rapidly changing demands of the global economy by promoting a culture of continuous learning and up-skilling, supported by government policies and incentives. 
• This would not only help to bridge the skill-employability gap but also enable India’s workforce to remain agile and prepared for the ever-evolving job market. 
• Skillfully leveraging the demographic dividend can pave the way for elevated living standards and sustain the country’s economic growth.
• The ideal employee in the 21st century embodies a diverse set of skills which includes a perfect blend of technical and soft skills.

News Source: the pioneer