FM Urges World Bank to Focus on High-Impact Skilling Sectors to Boost Employment

New Delhi : Finance Minister Nirmala Sitharaman has called on the World Bank to work closely with nations in pinpointing high-priority skilling sectors, with a particular focus on generating employment, skill matching, and sustaining labor retention. Speaking at the plenary lunch during the World Bank and IMF Annual Meetings in Washington, D.C., Sitharaman emphasized that the global job market faces unprecedented challenges. She noted that economic uncertainties and rapid technological shifts are continually reshaping the skills required for youth entering the workforce, stressing that jobs remain one of the world’s most urgent issues.

The Finance Minister highlighted the World Bank’s history of research in employment and sectoral shifts, including areas like green jobs, employment impacts following the adoption of artificial intelligence, and demographic changes. However, she called for a more comprehensive, multi-sectoral analysis to better understand how these emerging trends intersect, impacting job losses and job creation alike. Sitharaman stated that a robust, data-driven analysis is essential to accurately forecast labor demands and to help countries build targeted skilling programs that align with market needs.

Furthermore, she pointed to geopolitical challenges such as regional fragmentation, which have wide-reaching effects on employment in sectors like food production and exports. She suggested that these dynamics also be integrated into the World Bank’s analysis, given their potential to shift workforce needs on a global scale. The Finance Minister noted that while manufacturing has historically been a driver of economic development and job creation, countries must now look to alternative pathways, especially as digital and green economies rise. This diversified approach to growth could foster new types of employment opportunities, particularly in emerging sectors that are becoming increasingly integral to the global economy.

Sitharaman proposed an outcome-oriented approach with a clear roadmap for effective implementation, advocating for strategies that bridge the gap between workforce training and available jobs. She stressed that high-quality skilling initiatives need to be driven by actionable plans, ensuring that workforce development is directly tied to in-demand roles. Such an approach, she suggested, will not only support economic growth but also improve job retention and worker mobility across sectors.

The Finance Minister’s intervention aligns with India’s broader goals of fostering a skilled and employable workforce, especially among youth, who are essential to sustaining the country’s economic momentum. Her remarks underscore the need for collaboration between multilateral institutions like the World Bank and national governments to build resilient economies that can adapt to evolving global market dynamics.