Unemployment is an increasing issue for economies globally. The breathtakingly low unemployment rate of 3.2% in India, as determined by the Periodic Labour Force Survey (PLFS) for 2022-23, doesn’t reflect the reality of the employment landscape within the nation.

Although there is a declining unemployment rate, the overarching feeling is that job availability is insufficient. This management of the growing unemployment issue has seen the exploration of opportunities in developed countries for the young workforce within India.

The worldwide workforce shortage, prevalent in developed nations, provides a unique opportunity for India to export its youthful and growing workforce. India’s abundant pool of young population can work in these developed nations and become a crucial part of their workforce.

A total of 17 Mobility and Migration Partnership Agreements (MMPA) have been signed by the Indian government with countries like Australia, Austria, France, Finland, Germany, Italy, Japan, and the UK. Additional agreements are being put in place with nations such as the Netherlands, Greece, Denmark, Switzerland, South Korea, and Taiwan. These agreements are designed to facilitate the free movement of the workforce internationally.

Although the Indian economy is currently ranked 5th in the world, the disconnect between economic growth and employment generation needs addressing. It’s alarming to note that, despite there being 13 million active job seekers on India’s Union Ministry of Labour and Employment’s portal, there are only 2.20 lakh openings across both the private and public sectors.

The gap between the supply and demand of the young workforce in India is continually growing. Every year, a colossal 12 million young people join the labour market. This situation differentiates India from the US, Japan, and Germany, where the workforce is ageing and there is a severe shortage of young labour.

India can capitalise on this situation due to its young population set to grow from 62% to 68% by 2030 and can meet the workforce demands of developed nations.

The ageing population in developed nations creates an increased dependency on technology like Artificial Intelligence (AI) and the Internet of Things (IoT). However, this approach is limited in mitigating the labour shortage. In contrast, India offers an abundant, young, and eager workforce that can meet these emerging workforce requirements in developed countries.

To leverage this young workforce, institutes like Skill India International Centres (SIICs) need to offer immigration help and post-placement support.

In conclusion, current unemployment and labour force trends present opportunities for young Indian labourers in developed countries. Conversely, it also highlights an immediate requirement for internal employment generation within India to maintain a healthy balance.