News: India will add 110 million to global workforce by 2020: Goldman Sachs

C-Suite

India will add 110 million to global workforce by 2020: Goldman Sachs

As per a study by Goldman Sachs ‘India’s Rising Labour Force’, a demographically young India will be the largest contributor to the global labour force in the coming decades, and will add about 110 million workers by 2020. In contrast, China's labour force will increase by 15 million and Japan's will decline by 3 million over the next 10 years. The growth of workforce in Brazil and US will be lower than that of China. The study said that India's labour force is expanding at a time when many other countries are facing "ageing-related issues" (older populations) and shrinking workforce. India's workforce growth, said the report, will be driven by people in their 30s and 40s, urbanisation, and rise in number of working women. The study also states that nearly half of the increase in the labour force in the next 20 years will come from the "thorites" (people in their 30s and 40s) age group, which tend to be the peak years for earnings, savings and productivity. Besides, increasing urbanisation and a large number of women potentially entering the workforce will stoke the trend. However, the report also said that to be able to absorb such a large labour force, especially one that will move from agriculture into industry and services, the Indian industry would need to create 40 million jobs over the next decade. It also cautioned that to be able to reap dividends from favourable demographics, India will have to overhaul its labour laws that restrict hire-and-fire policies and invest heavily in education and and skills training.

As per a study by Goldman Sachs ‘India’s Rising Labour Force’, a demographically young India will be the largest contributor to the global labour force in the coming decades, and will add about 110 million workers by 2020. In contrast, China's labour force will increase by 15 million and Japan's will decline by 3 million over the next 10 years. The growth of workforce in Brazil and US will be lower than that of China. The study said that India's labour force is expanding at a time when many other countries are facing "ageing-related issues" (older populations) and shrinking workforce. India's workforce growth, said the report, will be driven by people in their 30s and 40s, urbanisation, and rise in number of working women. The study also states that nearly half of the increase in the labour force in the next 20 years will come from the "thorites" (people in their 30s and 40s) age group, which tend to be the peak years for earnings, savings and productivity. Besides, increasing urbanisation and a large number of women potentially entering the workforce will stoke the trend. However, the report also said that to be able to absorb such a large labour force, especially one that will move from agriculture into industry and services, the Indian industry would need to create 40 million jobs over the next decade. It also cautioned that to be able to reap dividends from favourable demographics, India will have to overhaul its labour laws that restrict hire-and-fire policies and invest heavily in education and and skills training.

 

Read full story

Topics: C-Suite, Strategic HR, Talent Acquisition, #Updates, #HRInsights

Did you find this story helpful?

Author

QUICK POLL

How do you envision AI transforming your work?

People Matters Big Questions on Appraisals 2024: Serving or Sinking Employee Morale?

LinkedIn Live: 25th April, 4pm