India and ILO Partner on Global Skills Classification Study to Shape Future of Work

On 16 September 2025, the Government of India and the International Labour Organization (ILO) signed a landmark agreement to fund a feasibility study on an international classification of occupations based on skills and qualifications. The initiative, backed by €650,000 in funding from India, marks India’s first direct funding agreement with the ILO and underscores its growing leadership role in shaping global labour policy.

A New Global Framework for Skills and Jobs

The two-year study (September 2025 – September 2027) will explore the creation of a standardized global taxonomy of occupations, focusing on skills and qualification requirements. The aim is to improve comparability across countries, thereby informing policy in key areas such as:

• Labour migration and international recruitment practices.

• Education and training systems, aligning curricula with global needs.

• Career guidance, enabling workers to better navigate changing job markets.

• Emerging sectors such as the green economy, digital transformation, and the care economy.

By establishing a shared framework, the study seeks to reduce inefficiencies caused by divergent job classifications and strengthen the global mobility of workers.

Building on India’s G20 Leadership

India’s commitment follows its 2023 G20 presidency, where leaders emphasized the urgent need for greater comparability of skills across borders. India’s leadership in South-South cooperation and active role in BRICS (Brazil-Russia-India-China-South Africa) and IBSA (India-Brazil-South Africa) forums has positioned it as a driver of inclusive, future-focused labour strategies.

ILO Director-General Gilbert F. Houngbo praised the agreement: “I appreciate India’s strong leadership in advancing this initiative, which will reinforce meaningful peer learning among G20 members on skills taxonomy.”

Technology-Driven Research

The study will deploy cutting-edge technologies, including artificial intelligence (AI) and big data analytics, to compare and harmonize occupational taxonomies used by different countries and organizations. Early findings from the OECD show wide disparities in how job descriptions are structured globally—differences that impede labour mobility, hinder international recruitment, and complicate education-to-employment pathways.

By leveraging advanced analytics, the project will identify overlaps, gaps, and inconsistencies in current systems, laying the groundwork for a globally coherent framework.

Supporting the SDGs and the Future of Work

The initiative aligns with the UN Sustainable Development Goals (SDGs):

• SDG 4 (Quality Education): Ensuring training and education systems are relevant to evolving labour market demands.

• SDG 8 (Decent Work and Economic Growth): Promoting fair, inclusive, and sustainable employment opportunities.

This partnership also reflects a broader international consensus that the future of work must be equitable, adaptable, and inclusive. By harmonizing skill standards, the initiative will help countries adapt to demographic shifts, technological disruptions, and climate-related transitions.

India’s Expanding Global Role

India’s decision to fund the study also signals its intent to strengthen global labour governance. With its upcoming BRICS presidency in 2026, India is expected to amplify its influence on labour mobility, digital skills, and inclusive growth.

For the ILO, this agreement highlights the value of partnerships with emerging economies in shaping multilateral cooperation. For India, it is a chance to demonstrate leadership by providing both funding and expertise in addressing challenges central to the future of work.

Looking Ahead

By September 2027, the feasibility study will present recommendations on the structure, methodology, and governance of a new international occupational classification system. If implemented, the framework could transform how governments, employers, and workers align education, recruitment, and career development across borders.

This collaboration sends a clear signal: cooperation and innovation are critical to building a labour market that is global, fair, and future-ready.