The integration of technology, especially digital technology into all spheres of human life has changed how we operate and deliver value into the development of this system and life style. In this era of rapid digital transformation, this study explores the role of digital skills in enhancing youth employment and empowerment. Drawing on data from various sources like ILO, WEF, and national reports, it examines key domains such as AI, cybersecurity, data analysis, and basic computer literacy, highlighting their relevance to job markets. In India, over 65% of the population is under 35 (similar to that of Vietnam), government initiatives like PMKVY (training 1.6 crore youth with 24 placement) and private programs such as Intel’s AI for Youth (reaching 1.6 million), Coursera, etc demonstrate progress, yet challenges like rural-urban divide, gender gaps, digital divide, and continuous update in learning persist, with only 45.9% of graduates employable and even less with a proper pay structure. Globally, proficiency varies, with Europe being at top (e.g., Switzerland topping Coursera’s 2025 report) while developing regions face shortages. The research identifies mismatches linking skills awareness to employment, bringing forward solutions like public-private partnerships, early education integration, continuous comprehensive training and proper verification and monitoring systems to bridge in the gap. Findings suggest that targeted upskilling could boost youth hiring by 11% in India by 2026 and AI skills will now command premium pay of up to 56%. Also opening the window for creating more self-employment options. By synthesizing these insights, the paper advises for inclusive policies to tackle demographic dividends, reduce inequalities, and promote economic growth in a digital future.
Chaturvedi et al. (2026) studied this question.