Union Finance Minister Nirmala Sitharaman has stressed that job creation is the most critical issue worldwide, particularly given the persistent economic challenges and rapid technological advancements that are reshaping the labour market.
Sitharaman highlighted the need for urgent action and a comprehensive analysis to address these issues, speaking on Thursday in the US at the plenary lunch during 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?".
Jobs are the most pressing global issue
The Finance ministry, in an official statement, stated, "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 participate in 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.
Watch visuals of Union Minister for Finance and Corporate Affairs Smt. @nsitharaman’s participation in the Fourth G20 Finance Ministers and Central Bank Governors #G20FMCBG Meeting #AnnualMeetings2024, in Washington DC, yesterday. https://t.co/PfBrtYt34C pic.twitter.com/72J0c8AlFe
— Ministry of Finance (@FinMinIndia) October 24, 2024
World bank conducted studies on sectoral trends
On Thursday, she pointed out that while the World Bank has previously conducted several studies on sectoral trends and their impact on employment—covering topics like "green jobs," employment changes due to AI, and the effects of demographic shifts—there is now a pressing need for a broader, multi-sectoral approach.
According to Sitharaman, an in-depth analysis that examines the interplay of these emerging trends is crucial to understanding both job losses and opportunities.
She also emphasised that this analysis should factor in the impact of geopolitical shifts, such as the fragmentation affecting global supply chains, and how this influences critical sectors like food production, exports, and associated employment.
Beyond traditional manufacturing-led growth model
The Finance Minister also highlighted the importance of looking beyond the traditional manufacturing-led growth model. With technological changes driving rapid shifts in the types of jobs that are needed, she urged the World Bank to explore alternative growth strategies and the kinds of jobs they would generate.
Sitharaman believes that identifying these new pathways will be essential to ensuring sustainable economic development in the face of modern challenges.
Pinpoint sectors for skill development
Furthermore, she called on the World Bank to strengthen its collaboration with countries to pinpoint high-priority sectors for skill development. She also emphasised that these efforts should be grounded in thorough data analysis and knowledge-based approaches to enhance employment opportunities, align skills with market demand, and retain skilled labour.
The Finance Minister also stressed the importance of creating an outcome-focused roadmap with a clear implementation strategy. Such a roadmap, she said, would help ensure that the World Bank and its partner countries are well-prepared to meet the evolving demands of the global job market.