Europe is currently facing a severe labour shortage. According to Eurostat, unemployment rates across European countries reached record highs in 2018. In Germany, for example, the jobless rate hit a new high of 7.4% last year.
| Information and Communication Technology (ICT) came up as one of the top five sectors witnessing the mismatch between labour demand and supply. 2 out of 5 companies in Europe were facing a crisis in recruiting required skills. |
Europe is struggling to cope with its ageing population and declining birth rates. The working-age population was reduced by 4% (13.5 million) in 2020. It means fewer young people entering the workforce, leaving companies scrambling to fill positions. The situation has become so acute that some economists are warning about an impending “youthquake” — a mass exodus of workers from the continent.
It suggests that the labour market is becoming increasingly mobile across Europe. It also means that the skills gap will persist for years to come.
| On the other hand, IT talent in India is booming, with the record maintenance of the highest rank in terms of global sourcing. |
The Role of India in Meeting the European Skill Shortage:
In 2018, The International Labour Organization (ILO) held a high-level conference on “Building the Business Case for Fair and Ethical Recruitment in the Context of Migration from India to the European Unions.”
Ahead of the event, Dagmar Walter, ILOs Director, addressed the audience on building the business case for fair recruitment practices in the context of migration. She highlighted how the Indian economy is expected to grow by 7% over the next five years and will continue attracting migrants worldwide.
This population growth is projected to demand skilled professionals in IT & ITeS, engineering, healthcare, construction, and agriculture sectors.
According to the ILO, India is Europe’s second-largest source of migrant workers. In 2016 alone, around 2.5 million people migrated worldwide from India – the highest annual number of migrants. The UK attracted the highest number of migrants, followed by Germany, France, and Italy.
Recruitment agencies, like Dynamic Staffing Services, play a vital role in meeting these contingencies in destination countries by sourcing qualified professionals in India.
Is the Labor Mobility on Rise Causing this Labor Shortage?
Europeans moving out of the continent is mainly due to labour market changes and the fact that many countries offer better employment opportunities. However, the migration of skilled workers is increasing too. From 2011 to 2018, the proportion of migrants arriving in a host country with tertiary education jumped from 26 percent to 33 percent.
In addition to the increase in internal migration, the number of Europeans who moved to different parts of the same country also grew substantially during the period under review. While international migration accounted for less than half of the growth in intra-EU mobility, it still contributed around one-third of the net gain.
India Emerging as a Global Leader in Providing Skilled Manpower
According to data released by the Labour Bureau, the number of people employed in India rose by 8.8 million to 405.6 million in April. This is the highest monthly rise since October 2017, when 9.2 million jobs were added.
The substantial increase in the labor force has made India a pioneer among emerging economies regarding job creation. The country now accounts for more than half of all new jobs created globally.
India is home to over 20 million expatriates contributing significantly to the economy through their skills and expertise. The country also boasts a large number of highly educated professionals who are willing to relocate abroad.
With such a huge pool of talent at its disposal, India is poised to become a significant player in the global labour market. The country can play a pivotal role in helping other countries meet their staffing requirements. It can also help them develop competitive advantages against rivals.
According to data released by the Labour Bureau, the number of people employed in India rose by 8.8 million to 405.6 million in April. This is the highest monthly rise since October 2017, when 9.2 million jobs were added.
The substantial increase in the labour force has made India a pioneer among emerging economies regarding job creation. The country now accounts for more than half of all new jobs created globally.
India has an edge as Geo-poles because of its Location
India is located along one of the world’s most important trade routes. Therefore, there is always a demand for workers in various sectors – both skilled and unskilled.
IN 2020, the Global Summit on Today’s World Was Characterized By Globalization That Thrives On Mobility Of Global Talent, organized by the Ministry of External Affairs. Senior Official Bhattacharya said, ‘India had already become a major destination for people migrating across the globe. An official statement said India had been well-placed geo-strategically and geo-politically to create and provide a globally competitive workforce.’
Specialization, domain-specific know-how, and skills are essential to successful employment and will also determine the employable nature of the youth, who constitute India’s demographic dividend and advantage the country shall enjoy into the second half of the 21st century, he added. Speaking on ‘The future of work — creating a globally competitive skilled workforce, the senior MEA official pointed out that India was well-positioned in traditional labour markets in the Gulf and Europe.
How Dynamic is Staffing Services helping with the right placement?
The inflow of Indian immigrants to Europe has been rising, constituting 7.9% of European nations. According to these statistics, the number of overseas Indians totaled 31.2 million.
The role of recruitment agencies like Dynamic Staffing Services is indispensable in matching the right candidate with the right job.
We have a proven track record of placing top candidates in jobs worldwide. We are helping businesses worldwide with the best pool of talent. Our clients include Fortune 500 companies, government organizations, startups, SMEs, and more.
Dynamic Staffing Services helps you find the perfect match between your company culture and our candidates’ individual talents.
Our team of recruiters are experts in their field and are passionate about what they do. They understand the needs of each client and strive to deliver exceptional service every time.
