By Bl New Delhi

Copyright thehindubusinessline

Attempting to enhance the global employability of Indian workers, the Union government has signed a Memorandum of Understanding (MoU) with the International Labour Organisation (ILO) to advance the International Reference Classification of Occupations (IRCO). The agreement aims to help Indian youth access global job markets by aligning domestic occupational data with international standards.

The MoU was signed in Geneva, Switzerland, by Ambassador Arindam Bagchi, India’s Permanent Representative to the UN and other international organisations in Geneva, and Gilbert F. Houngbo, Director-General of the ILO. Union Minister for Labour and Employment Mansukh Mandaviya attended the event virtually.

The IRCO, developed by the ILO, is a system that classifies occupations based on job functions, tasks and duties. It serves as a universal framework for compiling and comparing occupational data across countries. According to the ILO, the classification system supports key areas such as international migration management, vocational training, and labour market analysis.

By adopting the IRCO framework, India aims to streamline its skill ecosystem, facilitate mutual recognition of qualifications, and position Indian workers more competitively in global labour markets.

Skill Shortages

The initiative gains further relevance amid rising global concerns over skill shortages, especially in ageing economies facing demographic challenges and rapid digitalisation. During India’s G20 Presidency in 2023, leaders had committed to developing well-managed, skills-based migration pathways. Endorsing the development of IRCO based on skills and qualification requirements was seen as a key enabler for international labour mobility.

In his address, Mandaviya stated that the collaboration with the ILO reflects a shared commitment to shaping the future of work amidst global transformations, the Ministry of Labour and Employment said in a statement on Tuesday.

“The International Reference Classification will enhance comparability of data and promote mutual recognition of skills,” he said.

The Minister highlighted India’s progress toward greater formalisation of the economy, and cited the recently launched Pradhan Mantri Viksit Bharat Rozgar Yojana, which aims to generate over 35 million formal jobs in the next two years. He also stressed the role of digital tools in improving labour market outcomes.

Mandaviya showcased two major Indian digital labour platforms — the National Career Service (NCS) Portal and the e-Shram Portal — which were recently presented at the ILO.

“These digital initiatives hold great potential for cross-learning and adaptation by other member states,” he noted.

He also proposed a dedicated session in collaboration with the ILO to facilitate knowledge sharing on India’s digital public goods in the labour sector.

ILO Director-General Gilbert F. Houngbo welcomed the partnership and underscored its potential to benefit countries worldwide. He also commended India’s efforts in labour mobility and social protection reforms, describing them as a model for emerging economies, said the Ministry.

Published on September 16, 2025