Investment in upskilling can boost global GDP by $6.5 trillion by 2030: WEF report

Investment in upskilling has potential to boost the global GDP by $6.5 trillion by 2030, including by $570 billion (over ₹40 lakh crore) in India alone -- the third highest after China and the US, a WEF report showed on Monday.

The study released during the ongoing online Davos Agenda Summit, to be addressed by Prime Minister Narendra Modi and a host of other global leaders, also said that accelerated investment in upskilling and reskilling of workers could create 53 lakh (net) new jobs by 2030, and help develop more inclusive and sustainable economies worldwide.

Country-wise, India has the second highest additional employment potential at about 23 lakh, after the US at close to 27 lakh, but much more than 17 lakh for China.

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The report, Upskilling for Shared Prosperity, authored in collaboration with PwC, found that accelerated skills enhancement would ensure that people have the experience and skills needed for the jobs created by the Fourth Industrial Revolution – boosting global productivity by 3 per cent, on average, by 2030.

The additional GDP potential is the highest in China at almost $2 trillion, followed by close to $1 trillion in the US.

“Even before Covid-19, the rise of automation and digitization was transforming global job markets, resulting in the very urgent need for large-scale upskilling and reskilling. Now, this need has become even more important,” said Bob Moritz, Global Chairman, PwC.

The newly created jobs will be those that are complemented and augmented - rather than replaced by technology.

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“Millions of jobs have been lost through the pandemic, while accelerating automation and digitization mean that many are unlikely to return. We need new investments in the jobs of tomorrow, the skills people need for moving into these new roles and education systems that prepare young people for the new economy and society,” said Saadia Zahidi, Managing Director, World Economic Forum.

According to Sharan Burrow, General-Secretary, International Trade Union Confederation (ITUC) “investment in job creation, particularly climate-friendly jobs, is key to ensuring a Reskilling Revolution, and concerted action by governments and by business is needed urgently.”