Will Labour Shortages by 2047 Open Doors for India’s Youth?
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Synopsis
A recent report reveals that by 2047, global labour shortages may reach 250 million workers, creating a significant opportunity for India’s young workforce to transform into a global talent hub. With strategic reforms, India could harness its demographic advantage to fill this critical gap in the job market.
Key Takeaways
- Global labour shortages projected to reach 250 million by 2047.
- India's young population presents a unique opportunity to fill jobs.
- Reforms needed to enhance workforce mobility and standards.
- Potential for remittances to increase to $300 billion by 2030.
- Strategic focus on sectors experiencing high demand.
New Delhi, Sep 15 (NationPress) A recent report indicates that by 2047, global labour shortages could impact up to 250 million workers across various sectors, including blue and white-collar jobs. This presents a remarkable opportunity for India’s young and expanding workforce to emerge as a leading hub for global talent.
The study conducted by the Global Access to Talent from India (GATI) Foundation in partnership with Boston Consulting Group (BCG) reveals that diminishing birth rates and declining workforces in developed countries are resulting in acute labour shortages, with countless jobs remaining unfilled and businesses facing challenges.
Notably, just 20 countries, like the US, UK, Germany, Japan, and South Korea, will represent 90% of this labour deficit.
Approximately 50% of the shortfall will be in blue-collar positions—such as transport, hospitality, and industrial roles; another 20% will be in service sectors including nursing and education; while 30% pertains to white-collar jobs. The absence of filled positions is already costing the global economy over $1 trillion annually in lost productivity.
Despite these challenges, India boasts a significant demographic advantage, with a youthful population. Each year, the country adds between 10-12 million individuals to its eligible workforce, a trend expected to persist.
“By 2047, advanced economies could witness a shortfall of between 200-250 million workers. India has a unique chance to fill this void, leveraging its established strengths in ICT and professional services. The next phase must involve exploring new sectors—healthcare, green skills, and manufacturing—where global demand is escalating,” stated Rajiv Gupta, Managing Director & Senior Partner at BCG.
“India is home to the most extensive pool of working-age talent and will continue to be a source of demographic strength as many other nations age. Currently, India’s median age is under 30, with 600 million individuals aged between 18 and 40 compared to over 40 in OECD countries. With an anticipated 50 million global job opportunities by 2030, India has the potential to fill around 10 million positions,” added Arnab Bhattacharya, CEO of GATI Foundation.
Gupta emphasized the need for “bold reforms to align qualifications, enhance mobility, and integrate global standards” to allow India to transition from merely contributing to the global workforce to becoming its backbone.
Currently, Indian expatriates send back approximately $130 billion annually in remittances.
Each year, over 700,000 individuals travel overseas as migrant workers. However, India’s share of global migrants stands at only 6%, which is significantly lower than its representation in the world population of 18%.
If India capitalizes on this opportunity, the number of individuals seeking employment abroad could rise to 1-1.5 million annually by 2030, with remittances potentially reaching $300 billion per year.
If properly implemented, these strategies could enable India to mirror the global success of its IT services sector across various fields, including healthcare, domestic work, and manufacturing.
Point of View
I believe that India's youthful population provides a significant opportunity to address the impending global labour shortages. With the right policies and initiatives in place, India can not only fill these gaps but also redefine its role on the world stage as a leader in various industries.
NationPress
15/09/2025
Frequently Asked Questions
What sectors will be most affected by labour shortages?
The report indicates that labour shortages will primarily impact blue-collar roles (50%), followed by service roles (20%) and white-collar jobs (30%).
How can India benefit from global labour shortages?
India can leverage its young workforce to fill the gaps left by ageing populations in developed countries, particularly in sectors like ICT, healthcare, and manufacturing.
What is the current status of Indian workers abroad?
Indian expatriates currently contribute around $130 billion annually in remittances, with over 700,000 individuals migrating overseas for work each year.
