Photo: reports.weforum.org
The World Economic Forum’s Future of Jobs Report 2025 and QS’s World Future Skills Index contain critical insights into the state of India’s workforce and its preparedness for the future. They offer a roadmap for the government and universities to address the pressing challenges and opportunities in shaping a future-ready workforce. Their findings accentuate the urgency of aligning educational strategies with the rapidly evolving demands of the global economy.
The findings
The Future of Jobs Report highlights the significant forces driving global labour market changes by 2030. Among these, technological advancements, demographic shifts, geo-economic fragmentation, economic uncertainties, and the green transition stand out. Technological change and digital access are anticipated to play a crucial role, with 60% of employers identifying them as major drivers. At the same time, 50% of employers expect economic factors, such as job displacement, to reshape industries. Climate change mitigation is seen as a dual force, both creating jobs in renewable energy and environmental fields and requiring adaptations to business models due to geopolitical tensions. These trends point to a dynamic labour market characterised by job creation (170 million new jobs are projected) and job displacement (92 million roles could become obsolete).
In response to these shifts, employers have prioritised workforce training, wage increases, and employee well-being. Notably, 59 out of every 100 workers will require training in crucial skills such as analytical thinking, resilience, and technological literacy. Emerging roles such as Big Data specialists and AI engineers are expected to see substantial growth, highlighting the need for a workforce equipped with advanced technical and cognitive skills. The emphasis on upskilling indicates that educational institutions must proactively prepare students for a competitive job market. Equally important is the integration of soft skills, such as emotional intelligence, adaptability, and leadership, into professional development programmes. Employers are increasingly valuing these attributes as critical for navigating dynamic work environments.
The QS World Future Skills Index complements these findings. Ranking second globally in terms of preparedness for AI and green skills, India demonstrates considerable potential. However, the report reveals stark gaps in workforce skills, particularly on supply-side indicators. While India excels in its ability to identify and recruit for future-focused skills, as evidenced by its 99.1 score in the ‘Future of Work’ parameter, its performance in ‘Skills Fit’ — the ability of the workforce to meet these demands — lags significantly, with the country scoring just 59.1. The report also identifies deficiencies in fostering entrepreneurial and innovative mindsets, with India’s overall ranking in ‘Academic Readiness’ placing it at a modest 26th position. Further, India’s performance in future-oriented innovation and sustainability is alarmingly low, a mere 15.6 out of 100. Additionally, India’s limited investment in research and development further worsens the issue, hindering its ability to compete globally in areas such as renewable energy technologies and climate-friendly innovations.
An opportunity
The findings emphasise a transformative opportunity for India to align its education system with global trends and workforce demands. To bridge the skill gaps identified, educational institutions and governments must adopt a multi-pronged approach that addresses curriculum innovation, faculty capacity, infrastructure, and equitable access while fostering robust collaboration among academia, industry, and policymakers. The emphasis on creativity, critical thinking, resilience, problem-solving, and entrepreneurial skills must become central to higher education. Universities must embed these competencies into the curriculum through interdisciplinary courses, experiential learning modules, and problem-based learning approaches. Initiatives such as hackathons, startup incubators, and design-thinking workshops should become integral to the academic framework to nurture innovation and adaptability.
A green curriculum is imperative. Institutions could establish specialised centres for sustainability research, offer courses on green technologies and practices, and encourage student-led community initiatives that address local environmental issues. Collaboration with the private sector is critical for bridging the education-industry gap. Higher education institutions need to form robust partnerships with industries to co-create curricula, offer internships, and ensure that students graduate with job-ready skills. Industry players can contribute by funding skill development centres, mentoring students, and providing real-time insights into market needs.
Faculty development is another area for reform. Universities must implement comprehensive training programmes that include workshops, certifications, and global exchange opportunities.
The government must spearhead systemic reforms by increasing skill development, research, and innovation investments. A specific focus on building digital infrastructure in rural and semi-urban areas will reduce the urban-rural divide.
India’s higher education system must undergo a paradigm shift to remain agile and future-focused, while the government must foster an enabling policy environment.
P. John J. Kennedy, former professor and Dean, Christ University, Bengaluru
Published – April 08, 2025 02:02 am IST