Migration Trends

Migration, both domestic and international, plays a crucial role in shaping economies and societies. In India, cities like Bengaluru, Delhi NCR, Hyderabad, Mumbai, Pune, and Chennai are emerging as hubs attracting skilled workers, mainly due to increased job opportunities, higher salaries, and better living standards. Internationally, countries like Australia, Canada, the US, Germany, and the UK are becoming popular destinations for migrants seeking better prospects.

Domestic Migration Trends

• Skilled Talent Movement in India: According to LinkedIn data, there has been a significant influx of skilled talent to six major cities in India over the last year: Bengaluru, Delhi NCR, Hyderabad, Mumbai, Pune, and Chennai.
  • These cities attracted 76 lakh knowledge workers in the last 12 months.
  • 120 multinational companies (MNCs) have set up global capability centres in these cities, attracting skilled tech and finance workers with attractive roles and salaries.
• Rural to Urban Migration: Every minute, 25-30 Indians move from rural areas to cities in search of better jobs and better living conditions.
  • By 2030, the urban population in India is projected to reach 600 million.
  • The movement is largely driven by the high demand for jobs and higher wages in urban areas.
• Economic Contribution of Southern India: Southern India, contributing about 31% of India's GDP despite having only 20% of the population, remains a key driver of India's economic growth.
  • However, Southern states (like Tamil Nadu and Kerala) are experiencing rapid aging due to lower fertility rates and higher life expectancy.
  • In contrast, Northern states like Uttar Pradesh, Bihar, and Madhya Pradesh are expected to have younger populations by 2036, leading to a potential migration from the North to South unless the northern states improve their job creation and GDP growth.

International Migration Trends

• Global Migration and Its Economic Impact: Cross-border migration generates an annual $9 trillion in global economic output, which could more than double by 2050.
  • Approximately 280 million people, or 6% of the global population, live outside their country of birth. This group would form the fourth-largest country by population.
• Top Destinations for Migrant Workers: Australia, Canada, the US, Germany, and the UK are leading destinations for migrants.
  • Australia has consistently ranked as the top choice for migrants since 2014. In the 2022-23 period, around half a million people moved to Australia.
  • Canada and the US follow closely, offering high quality of life, better job opportunities, and a welcoming environment for migrants.
• Employment and Talent Shortages: That there is a global shortage of workers, particularly in countries like the US, China, Germany, the UK, and Canada. This shortage has resulted in about 30 million unfilled jobs across the world's 30 largest economies.
• Migration and Workforce Composition: 26% of board-level executives in the world’s largest companies were from foreign countries. This highlights the growing significance of international talent in leadership roles.
  • Migration also leads to greater diversity in companies and promotes knowledge exchange across borders.

Key Factors Driving Migration

• Job Quality and Pay: High-quality jobs and higher salaries are among the top reasons for migration, whether it’s domestic (from rural to urban India) or international (from India to countries like the US and Australia).
• Living Conditions: The quality of life, including factors like climate, infrastructure, safety, and tax benefits, plays a major role in attracting workers to certain regions.
• Welcoming Culture: Countries that are inclusive and offer cultural acceptance are more likely to attract skilled talent.

Challenges for India and the Global Workforce

• India’s Graduate Output and Job Creation: India produces more than 1 crore graduates annually, but it faces challenges in providing jobs to this large pool of talent.
  • Over 35 million Indians live outside India, and 1 lakh white-collar professionals left the country in the past year alone.
• Wages vs Profits: At the lower end of the workforce pyramid, many companies pay below-living wages, leading to high attrition
  • Even in the IT sector, entry-level salaries have stagnated due to an oversupply of engineering graduates.
  • The question arises: Can businesses pay higher wages to reduce attrition and increase productivity?