India’s Multidimensional Employment Crisis in the Age of AI - Challenges and the Way Forward
April 21, 2025

Context:

  • In the past, waves of innovation, such as assembly lines or steam engines, have mostly affected low-skilled, blue-collar jobs.
  • Later, the digital revolution affected white-collar jobs through software and outsourcing.
  • The AI era, however, is distinct. India is facing a multidimensional employment crisis - one that is both visible and invisible.

A Dual Employment Crisis:

  • Visible crisis:
    • Youth unemployment: Over 80% of unemployed Indians are youth, many with secondary or higher education.
    • Disengagement: 1 in 3 young Indians is disengaged from both work and learning.
    • Job creation needs: India must create over 90 million new jobs by 2030, many in yet-to-emerge fields.
  • Invisible crisis:
    • Changing nature of work: Rise of AI, automation, and data-driven systems is reshaping work across sectors.
    • Key concern: Every worker must ask - “How replaceable is my job with technology?”

AI Era - A Paradigm Shift in Job Disruption:

  • The AI age disrupts all levels - from low-wage laborers to high-skill professionals (e.g., programmers, designers, artists).
  • Creative and analytical jobs are increasingly at risk due to generative AI.

The Core Competency - Adaptability through Learning:

  • Job security matrix:
    • Low-skill, low-replaceability jobs may survive
    • High-skill or low-skill but high-replaceability roles are most vulnerable.
    • Reskilling and lifelong learning emerge as the only durable edge.
  • Essential skills:
    • Tech literacy: Understanding digital systems, AI, automation.
    • Data literacy: Ability to interpret and act on large volumes of information.

Education for the Future - A Humanistic Approach:

  • Joseph Aoun’s “Humanics” framework:
    • Technical ability: Skills to work with machines and augment productivity.
    • Data discipline: Strategic thinking using algorithmic and analytical tools.
    • Human discipline: Creativity, empathy, contextual reasoning — uniquely human capabilities.
  • Shift required: Move from rote learning to experiential, interdisciplinary, and lifelong learning models.

Micro-Credentials - Modular Learning for a Modular Future:

  • Definition and importance:
    • Micro-credentials are short, focused certifications offering stackable learning experiences.
    • Already being embedded in global universities across disciplines.
  • Application in India:
    • Could reform India’s rigid, degree-centric higher education system.
    • Encourage interdisciplinary learning - e.g., data visualisation for political science or AI tools in historical research.

Strategic Imperatives for India:

  • Embed literacy in education:
    • Integrate tech and data literacy from school to college.
    • Train educators to become facilitators of future-ready skills.
  • Promote lifelong learning:
    • Encourage accessible, modular upskilling over traditional degree paths.
    • Support micro-credential ecosystems aligned with evolving job markets.
  • Foster cross-sectoral tech integration:
    • Apply AI and data tools across arts, agriculture, healthcare, and policy-making.
    • Enable personalised learning pathways to prepare for jobs that don't yet exist.

Conclusion - Shaping the Future of Work:

  • The future of work is uncertain but within control.
  • India must cultivate problem-solvers, creators, and adaptive thinkers.
  • Focus should not just be on AI engineers, but on empowered individuals across sectors who can lead in a tech-driven global economy.

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