India’s Youth Face AI Job Crunch: Only 10% Engineers Expected to Be Hired

India is on the brink of a significant transformation with artificial intelligence (AI) gaining momentum. A report by Google.org and the Asian Development Bank highlights both opportunities and challenges for India, one of the world's largest economies. Despite having a vast workforce, India urgently needs to provide accessible AI upskilling to remain competitive.

AI's Impact on India's Workforce

The report predicts AI could add USD 3 trillion to Asia-Pacific's GDP by 2030, with India playing a crucial role due to its young population. However, this growth could widen inequality if workers are left behind. Administrative roles like data entry and customer service are at risk from AI automation, affecting underserved communities such as women and informal workers.

Kelly Forbes, President & Executive Director of the AI Asia Pacific Institute, Asia Pacific, expressed concerns: "In countries like India, where a significant portion of the workforce is currently engaged in labor-intensive tasks such as labeling data and training AI systems, there's a looming question about the future. As these processes become increasingly automated and sophisticated, what opportunities will exist for millions of people whose livelihoods depend on these roles today? Without proactive planning for reskilling and creating pathways into higher-value AI and tech-related jobs, we risk leaving large parts of the population behind in the AI revolution."

Challenges for Young Job Seekers

India's youth face challenges finding jobs or upskilling due to a mismatch between skills taught and employer demands. Employers now seek skills like critical thinking and AI tool proficiency rather than traditional degrees. A Times of India report noted that only 10% of engineering graduates were expected to secure jobs in 2024, highlighting an urgent need for updated training aligned with job market demands.

Informal workers in sectors like packaging and textiles also face risks from AI automation. These jobs often involve repetitive tasks vulnerable to technological advancements. Additionally, digital access remains limited in rural areas where many lack smartphones or internet access. Bridging these gaps is essential for an inclusive AI future.

Gender Disparities in Employment

Women constitute about 35% of India's workforce but are over-represented in roles susceptible to automation. Many women leave work due to family obligations and face challenges re-entering a rapidly changing job market. The report suggests flexible skilling programmes tailored for women, including mothers returning to work, can help level the playing field.

Strategies for an AI-Ready Workforce

The report outlines steps for India to develop an AI-ready workforce: tailoring skilling efforts for diverse groups; focusing on practical training; raising awareness about skilling programmes; supporting MSMEs with AI adoption; addressing gender gaps; and improving digital access. These measures aim to ensure equitable participation in the AI-driven economy.

Programmes like Grow with Google have trained over 60 million people in APAC, while the AI Opportunity Fund aims to train 500,000 workers through partnerships with NGOs and local education providers. With intentional action from all stakeholders, India can lead the AI revolution or risk falling behind.