 "Indian IT workers (representational image)")
India’s workforce is at a crossroads. Data shared at the recently concluded 5th National Conference of Chief Secretaries (NCS) says that around 73% of employed Indians have only basic education, and the employability rate among youngsters remains stuck at 54.8%.
At the same time, IT and engineering companies are reporting a staggering 63% talent shortage, raising concerns about whether the workforce is ready for the jobs of the future.
Presided over by the Prime Minister from December 26-28, the three-day NCS focused on building ‘Human Capital for Viksit Bharat’. With India’s workforce projected to peak at 68.9% of the population by 2030, reaching 112 crore in 2047, the conference stressed the urgent need to bridge skill gaps across sectors.
Schooling vs education levels
A key presentation by the school education ministry revealed that years of schooling strongly influence productivity. India currently averages 13.87 years of schooling, translating into a labour productivity of 10.68 GDP per hour worked. By comparison, Russia (14.91 years) has productivity of 25.85, the US (15.92 years) hits 81.8, and even Brazil (15.79 years) reaches 23.68.
Each additional year of schooling is estimated to boost GDP by 0.37%. Over the last two decades, India has made progress—from 9.05 years in 2000 to 11.85 in 2010 and 13.87 today. Yet, basic education still dominates, with 26.6% of workers below basic level, 47.7% at basic, 11.9% intermediate, and only 13.8% advanced.
Agriculture still dominates workforce
India’s Employment Population Ratio (EPR) in 2023—around 57.6%—is comparable with the UK, Germany, and the US.
But productivity is a different story.
Agriculture still employs the largest share of the workforce at 45.5%, followed by trade/hotels/restaurants at 12%, and construction at 11.5%.
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View AllThe conference brought out the need to shift labour from agriculture to formal-sector jobs through skill training and policies that boost female workforce participation, currently at just 31%. Officials said a ‘whole of government’ and ‘whole of workforce’ approach to ensure India’s vast population becomes an asset rather than a challenge.