The recently published “Future of Work in India” report by the World Economic Forum and the Observer Research Foundation (ORF) provides an extensive analysis of the future job landscape in India. The report addresses the impact of technology transformation on job creation, workplace dynamics, employment trends, relations and the nature of work itself. It highlights that although the future of work in India appears uncertain, it is brimming with opportunities.
Optimism Towards Technological Advancements
Companies in India are reportedly excited about the future, especially concerning the possibilities brought on by the digitisation process and new technologies. According to the report, such developments have the potential to drive innovation, stimulate the adoption of new technologies, and encourage transformation, growth, and progress within companies.
The Influence of Technology on Job Growth
Interestingly, the report reveals that companies experiencing the highest growth in India prefer to hire men, indicating that technology-driven job growth seems to benefit men more than women. This trend could potentially undermine India’s efforts towards achieving gender equality and promoting women empowerment.
Job Creation over Job Loss
Despite concerns about technological advancements replacing human workers, the report displays a contrary view. Within India, the adoption of industrial technologies and machinery in the past five years has led to additional hiring instead of job loss. This favourable trend is expected to persist in the future, suggesting that if managed well, technological disruptions could create gainful employment opportunities for the increasing working-age population.
Acknowledging the Power of IoT and Big Data
Companies have shown recognition of the potential held by the Internet of Things (IoT) and big data. Many companies have already integrated aspects of IoT, or plan to do so in the next five years. There is also a growing trend towards the utilisation of big data.
Challenges to Technology Adoption
Despite the benefits, technology adoption faces two significant challenges – skills gaps and financial constraints. Companies often cite a lack of know-how among employees and insufficient investment capital in newer technologies as the main barriers to technology implementation.
Strategies to Overcome Skills Gap
To tackle the skills gap, companies are planning to retrain existing workers in new capabilities or have their employees learn the requisite skills on the job. These strategies indicate a proactive approach towards managing the changing skill requirements in a technologically advanced work environment.
The Gender Imbalance in Labour Market
The report expresses concern over the severe under-representation of women in the Indian labour market, which stands at a meagre 27 percent. This figure puts India among the countries with the lowest female participation in the workforce, significantly lower than the global average of 49 percent.
Rise of Contractualisation
The report identifies an increasing trend of contractualisation driven by factors such as stringent labour regulations, wage differential between permanent and contract workers, increasing import competition, and the weak bargaining power of contract workers compared to permanently employed and unionised workers.
Need for Improved Worker Protections and Benefits
Existing provisions for worker protection and benefits, including paid annual leave and sick leave for both permanent and contract workers, are deemed insufficient. There is an urgent need to rethink these measures and improve worker security.
Increasing Trend Towards Independent Work
Similar to trends seen in advanced economies across Europe and America, independent work, specifically freelancing, is on the rise in India. While freelancing offers benefits like flexible working hours and autonomy, it also comes with disadvantages such as long, unpredictable work hours and diminished employment rights.
The Way Forward
To maintain its current employment rate, India must create more than 8.4 million jobs annually. This requires a steady economic growth, decent job creation with better wages and security, and the provision of equal opportunities for women, youth, and marginalised communities. Addressing evolving skill requirements, creating an inclusive job policy environment, and establishing a robust ecosystem for workforce preparation is also crucial for India’s future.