Job Creation, Skill Redefinition Essential Amid Rapid Tech Transformation: Nirmala Sitharaman

Her remarks were part of the discussion on "How Should the World Bank Shape Its Future Strategic Direction and Help Clients Create More Jobs to Keep Pace with Evolving Megatrends"

Sitharaman is on an official visit to the US from October 20 to 26

Source : PTI

Union Finance Minister Nirmala Sitharaman highlighted that job creation is the foremost global challenge, especially given ongoing economic difficulties and the swift technological advancements reshaping the labour market.

Speaking at a plenary lunch in the US on Thursday, Sitharaman underscored the necessity for urgent action and thorough analysis to tackle these challenges. Her remarks were part of the discussion on "How Should the World Bank Shape Its Future Strategic Direction and Help Clients Create More Jobs to Keep Pace with Evolving Megatrends.”

The Finance Ministry in an official statement said, "In her intervention at the plenary lunch, FM Smt.@nsitharaman, while speaking on the topic "How Should the World Bank Shape Its Future Strategic Direction and Help Clients Create More Jobs to Keep Pace with Evolving Megatrends," emphasised that jobs are the most pressing global issue, given the continued economic headwinds and rapid technological change that are redefining the skills required for youth to enter the job market.”

Sitharaman is on an official visit to the US from October 20 to 26 to attend the Annual Meetings of the International Monetary Fund (IMF) and the World Bank, the 4th G20 Finance Ministers and Central Bank Governors (FMCBG) Meetings, the G20 Joint Meeting of FMCBGs, Environment Ministers, and Foreign Ministers, as well as the G7-Africa Ministerial Roundtable.

On Thursday, she noted that while the World Bank has previously conducted numerous studies on sectoral trends and their impact on employment—addressing topics such as "green jobs," the effects of AI on employment, and demographic shifts—there is now an urgent need for a more comprehensive, multi-sectoral approach.

Sitharaman stressed that a comprehensive analysis of emerging trends is essential for understanding both job losses and opportunities. She pointed out that this analysis must consider the impact of geopolitical shifts, such as the fragmentation of global supply chains, and their effects on vital sectors like food production, exports, and related employment.

She also underscored the need to move beyond traditional manufacturing-led growth models. Rapid technological advancements are reshaping the job landscape, so Sitharaman urged the World Bank to explore alternative growth strategies and the types of jobs they could create.

Identifying these new pathways is crucial for achieving sustainable economic development amid contemporary challenges. Additionally, she called on the World Bank to enhance its collaboration with countries to identify priority sectors for skill development. She stressed that these initiatives should be informed by thorough data analysis and knowledge-based strategies to improve employment opportunities, align skills with market demand, and retain skilled labour.

Finally, Sitharaman highlighted the importance of creating an outcome-focused roadmap with a clear implementation strategy. This roadmap will ensure that the World Bank and its partner countries are well-prepared to meet the evolving demands of the global job market.