Real-time labour market info system in the works

The government is planning to develop a labour market information system aimed at improving policy interventions related to employment and skills. The system, being jointly set up by the ministries of skill development and entrepreneurship, and labour and employment, will provide real-time information on labour market and availability of skill sets.

"The system will give a real-time view of the labour market and skill sets and help India align its workforce with the rapidly changing demands of industries in domestic as well as global economies, as India gears up to meet the global demand for skilled workers," said a senior government official, who did not wish to be identified.

A labour market information system is a network of institutions, people and data that collects, analyses and disseminates information about the labour market.

It provides quantitative and qualitative insights into job demand, supply, wages and skills, serving as a crucial tool for job seekers, employers, educators and policymakers to make informed decisions in relation to the career path, hiring of the workforce, courses needed and related policies for the labour market.

The plan is to collate data from government bodies, industry, skilling institutions and dashboards on a cohesive platform. Besides, a baseline of labour demand and supply will be created using a standardised skills taxonomy aligned with the National Classification of Occupations and the National Skills Qualification Framework.

For this, high frequency economic indicators such as goods and services tax (GST) filings and e-way bills will be used along with data sets from e-Shram and Skill India Digital Hub to estimate sectoral and regional demand.

Moreover, advanced artificial intelligence (AI) and machine learning (ML)-powered analytics will be used to generate real-time insights into skill gaps and workforce trends, ensuring a targeted and adaptive approach. These systems, commonly used in African nations and the ASEAN region, help centralise and analyse labour data to address employment challenges, facilitate skills development and empower the workforce.

The government is of the view that the system will benefit all stakeholders in the system, including job seekers, job providers, government, educators and skills trainers.

While job seekers can use the system to look for job openings, identify emerging opportunities and make informed decisions, job providers or employers can align their recruitment and training strategies with market demands.

Based on the trends on the system, the training providers and educators can design and update curricula to meet skills needs to address the talent gap across sectors.

The policymakers or government, on the other hand, can use the system to develop effective labour market policies, evaluate their impact and allocate resources efficiently to address labour market challenges and support national development goals.