Photo credit: www.cnbc.com

The Quest for Better Opportunities: India’s Job Seekers Look Abroad

Four years ago, Keshav Raj completed his computer science degree at the renowned SRM Institute of Science & Technology in Tamil Nadu. Armed with solid grades and experience from internships at startups in India and Indonesia, Raj aimed to secure a position in the data department of either a government office or a multinational corporation.

“My parents took a loan of 1.9 million Indian rupees ($22,491) for my education, so I studied diligently and interned to quickly find a well-paying job,” the 27-year-old stated in an interview. However, after multiple entrance tests and interviews, Raj remains unemployed in his desired field. Out of necessity, he accepted a job as a customer care executive at a global capability center serving Amazon customers, earning a mere 22,000 Indian rupees a month—insufficient to cover his living expenses and student loan repayments.

“My mother works as a clinic assistant, and my father drives an auto-rickshaw; they don’t make much. I need to contribute to the household bills, and continuing in India won’t suffice—job competition is fierce, and landing a desirable role is challenging,” he explained.

As Raj explores job opportunities outside India, he expresses a willingness to relocate anywhere for a better chance at a fulfilling career and improved living standards. He is one of many educated Indians seeking employment beyond their country’s borders, hoping for higher salaries, better career prospects, and enhanced quality of life.

According to data from the job portal foundit, there has been an 11.4% rise this year in international job listings posted by companies and consultants targeting Indian talent. Coinciding with that increase, the number of applications from Indian users surged by 59.4%.

Anurag Sinha, foundit’s chief product and technology officer, noted that this trend resulted from a “cautious hiring approach by Indian companies in essential sectors, leading to a temporary lull in domestic job offerings.” He added that this environment has prompted professionals to look overseas for stability and better growth opportunities, particularly in popular destinations like Canada, Australia, and the United Arab Emirates.

Beyond a sluggish domestic job market, Sinha pointed out that many Indians are actively seeking positions with global firms, whether through relocation or remote work, to gain international experience, work with advanced technologies, and increase their earning potential.

Notably, many applications come from younger professionals in entry and middle management roles, likely attributed to their ambition and adaptability to diverse working environments.

In sector-specific trends, Sinha observed a higher number of applicants in STEM-related fields, including technology, life sciences, and engineering. “Professionals in these areas are in high demand across the globe due to their expertise, adaptability, and cost competitiveness,” he remarked, emphasizing their significance in domains like software development, cloud computing, data science, and medical research.

A Deep-Seated Issue

The issue of brain drain is not exclusive to India; it reflects a broader challenge faced by emerging or developing economies grappling with an increasing number of educated millennials aspiring for better opportunities.

This trend in India dates back to the early 2000s, when professionals from fields such as medicine and engineering began seeking opportunities abroad, particularly in the United States. According to development economist Jayati Ghosh, the situation has evolved to see India losing talented individuals across various skill levels for over a decade.

Ghosh, now a professor at the University of Massachusetts Amherst, emphasized, “There is undoubtedly a jobs crisis in India.” She highlighted the aspirations of the young population, many of whom pursue higher education with the hope of a better future but struggle to find suitable jobs. “Families make significant sacrifices for education only for their children to face a lack of employment opportunities,” she stated.

The failure to create sufficient job opportunities has been exacerbated by India’s GDP growth, which has not translated into proportional job creation. Ghosh stressed that many reported job increases derive from self-employment or unpaid family labor rather than substantial new positions.

This commentary comes amid India’s concerning employment-to-population ratio of only 52.8%, compounded by a labor dependency ratio of 1.52, as reported by the International Labour Organization (ILO). With just half of the working-age population employed, India faces a daunting challenge in bridging the gap between its labor force opportunities and economic growth.

Boasting the largest diaspora in the world, with approximately 18 million Indians residing abroad, many skilled individuals have chosen to leave, resulting in critical skill shortages despite high unemployment rates domestically. High-profile departures include notable figures such as Alphabet CEO Sundar Pichai and Microsoft CEO Satya Nadella.

The multifaceted nature of this problem stems from employment not being a primary policy objective for the government. Ghosh noted that while India’s GDP growth stands at 6.7%, the benefits are disproportionately skewed towards the top 10% of the population. Policies often favor large corporations while neglecting small and medium enterprises that provide the majority of jobs.

Another concern Ghosh raised was the shortage of public sector employment, where institutions like government hospitals, schools, and railways have millions of unfilled vacancies. Filling these roles could lead to improved services, healthcare, and education, which would, in turn, stimulate job creation and economic growth.

Rethinking Immigration and Workforce Mobility

As more Indians seek opportunities abroad, Indian authorities are beginning to take a new perspective on immigration. External Affairs Minister Subrahmanyam Jaishankar referred to this evolving mindset as a “contemporary way” to view movement and mobility, suggesting that the traditional notion of “loss” associated with brain drain should be reevaluated.

Sunaina Kumar, a senior fellow at the Observer Research Foundation (ORF), described the narrative around brain drain as outdated, viewing movement as a hallmark of an interconnected global workforce. She also pointed out the economic benefits that arise from this global dispersion, including increased remittances, which are expected to grow from a reported $123 billion to $129 billion by 2025, driven by stronger labor markets in the U.S. and Europe.

The Path Forward for India

The debate surrounding whether the emigration of Indians will serve as an asset or a liability for the country remains active. What is essential for India is to equip its workforce to succeed both domestically and internationally while meeting societal and economic demands.

Kumar suggests implementing upskilling programs for recent graduates and current workers to help them remain relevant in a rapidly changing job market. Furthermore, investments in urban infrastructure and better living conditions are critical for retaining talent within the country.

“Indian cities face significant challenges in livability, including environmental degradation and poor infrastructure. Until these issues are effectively addressed, many individuals will continue to seek better opportunities abroad,” Kumar remarked.

Foundit’s Anurag Sinha emphasized that organizations should also play a vital role in retaining talent by offering compelling career development opportunities. By fostering a work environment focused on clear pathways for career progression and leadership development, firms can compete more effectively with international counterparts.

Addressing these persistent systemic issues will require time and thoughtful execution. However, with strategic improvements, India can cultivate a more competitive workforce and create prospects for individuals like Keshav Raj, ultimately shifting the narrative on employment and economic opportunity in the nation.

Source
www.cnbc.com