The Future of Work

Posted 19 Aug 2025

Updated 22 Aug 2025

4 min read

Why in the News?

Tata Consultancy Services (TCS) recent announcement to lay off 12,000 employees has raised implications on Future of Work.

More about the News

Many experts have alleged that the "future of work" is currently marked by significant job displacement due to automation and AI, leading to increased layoffs across various sectors.
Other than TCS, many Multinational corporations (Meta, Amazon etc) have let go more than 1,05,000 positions worldwide this year (Layoffs Landscape study).
- 20% of there were in India and some 45% of the layoffs were in HR, support, content and coding.
- Although TCS has clarified that this decision is based on skills mismatch and not AI, it raises concerns on the future of work and unemployability of our youth currently and in the years to come.

About Lay Offs

Lay-off means the failure, refusal or inability of an employer due to various reasons (shortage of coal, power or raw materials or natural calamity etc.) to give employment to a workman in worker list.

Legal Provisions related to Layoffs

Industrial Disputes Act, 1947: This is a key legal framework governing layoff in India.
- Karnataka High Court in Commissioner of Income Tax v. Texas Instruments India Pvt Ltd held Software Engineers as "workmen" under Industrial Disputes Act, 1947.
Four Labour codes
- Code on Industrial Relations: Regulates the process of layoffs by setting rules for notice periods, government approvals (in certain establishments), and worker-employer dispute resolution.
- Code on Wages: Ensures workers affected by layoffs receive timely payment of wages and compensation, protecting them from sudden income loss.
- Code on Occupational Safety, Health and Working Conditions: Mandates that even during layoffs or closures, employers must maintain certain safety and welfare provisions until separation is complete.
- Code on Social Security: Provides access to benefits such as gratuity, provident fund, and unemployment allowances for laid-off workers.

About Future of Work

The future of work refers to the ongoing transformation of how work is performed, organized, and experienced, driven by technological, economic, and demographic shifts.

How these drivers impact the Future of Work?

Economic Impact
- Shift in job types: 170 million new jobs are projected. The movement from routine, manual jobs to high-skill, knowledge-based and service-oriented roles. E.g. Big Data Specialists, Fintech Engineers etc.
- Vulnerable Jobs: Microsoft researchers argue that jobs involving writing, research, and communication, such as translators, journalists, and historians, may be replaceable by AI tools.
- Productivity boost: Generative AI could boost productivity adding an estimated $2.6–$4.4 trillion to the economy each year. (Mckinsey Report)
- Sectoral shifts: ILO estimates 54 million green jobs will be created between 2021 and 2030.
Workforce & Skills Impact
- Reskilling & up skilling: The future-ready skills such as Analytical thinking, creative thinking, resilience needed for workers.
- Skill Instability: According to WEF, 39% workers core skills will change by 2030.
Social Impact
- Inequality concerns: Wage and opportunity gaps may widen between high-skilled and low-skilled workers. E.g. Difference between Software developer and data entry operator.
- Gender inequality may widen: ILO study estimated average Gender pay gap of 34% for India in comparison to global average of 20%.
- Tribal growth and development will be impacted. E.g. The literacy rate of Scheduled tribes is 13 percent lower than that of the average literacy rate of India hence affecting skill development.
Ethical
- Social Responsibility: IT firms have a social responsibility to ensure fair and humane workforce management practices, especially given the substantial investment in employee development.
- Worker rights: Striking a balance between business efficiency and employee well-being is crucial in era of hire and fire.
- Psychological impact: Work life Balance, anxiety, stress, and other mental health issues among the workforce.

Initiatives taken by Government for Future of Work

Skilling, Upskilling and Reskilling
- Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Scheme for imparting skill development training through Short-Term Training (STT) and Up-skilling and Re-skilling through Recognition of Prior Learning (RPL).
- FutureSkills Prime is a digital skilling initiative by NASSCOM & MEITY, aimed at making India a Digital Talent Nation.
For adoption of New & Emerging Technologies
- AI for India 2030 initiative: By the Ministry of Electronics and Information Technology.
- National Mission on Interdisciplinary Cyber Physical System (NM-ICPS): By Department of Science & Technology, to enhance start-ups, Human Resource and skill-sets in emerging areas.
For Health and Well-being
- National Tele Mental Health Programme to improve access to mental health counseling and care services.

Conclusion

There is to need to strike a balance between business competitiveness and workforce well-being. Sustained investment in skill development, social safety nets, and ethical corporate practices will be crucial to ensuring that the future of work remains inclusive, resilient, and equitable.