As concerns continue to rise over the widening global employment gap, a new economic framework has been introduced that aims to address what many experts believe could become one of the defining economic challenges of the coming decades.

Deepak Sharma, founder of the Human Capital Monetisation Economic System (HRMES), has submitted an appeal to Ajay Banga, President of the World Bank Group, urging international institutions to consider structural economic reforms to confront a projected worldwide shortage of nearly 800 million jobs.

Referring to global workforce estimates, Sharma highlighted that approximately 1.2 billion young people are expected to enter the labour market within the next 10 to 15 years, while existing economic systems — capitalism and socialism — are collectively expected to generate only around 400 million employment opportunities. According to him, this growing imbalance could trigger economic instability, migration pressures, and social unrest unless addressed through large-scale systemic reforms.

Describing the challenge as “unsustainable and potentially catastrophic,” Sharma argued that incremental policy adjustments alone would not be enough to manage a crisis of this magnitude. Instead, he called for a complete rethinking of how economies value labour, productivity, and human contribution.

According to Sharma, capitalism in its current structure often treats labour primarily as an operational cost that businesses seek to minimize in order to maximize profits and efficiency. On the other hand, socialism, while emphasizing redistribution and welfare, frequently struggles to fully unlock individual innovation, entrepreneurship, and productivity potential.

“The current economic frameworks fail to properly recognize and utilize the hidden capabilities of millions of young individuals who remain outside formal economic participation,” Sharma said in his appeal.

As an alternative, he proposed the Human Resource Monetisation Economic System (HRMES), an economic model designed to recognize human potential as a measurable and monetizable economic asset rather than merely an underutilized resource.

The framework introduces a system in which individuals’ education, skills, experience, and projected productivity are evaluated and integrated into formal economic structures as economic value. It also suggests the development of financial instruments such as Human Capital Credit Notes and Human Capital Bonds, which would be linked to workforce productivity instead of conventional physical or financial collateral.

In addition, the proposal includes the concept of “Universal Potential Credits,” which would serve as time-bound financial support systems intended to help individuals and groups establish businesses or productive ventures. Unlike traditional welfare programs, these credits would function as repayable support mechanisms tied to future earnings generated through economic activity.

One of the central pillars of the HRMES proposal is the creation of a National HR Account, a structured platform designed to record, manage, and monitor the economic valuation of human capital. Sharma also outlined the concept of a “Manpower Grid,” a coordinated system intended to map workforce skills, allocate resources efficiently, and align labour capabilities with market demand in real time.

The framework further attempts to redefine the relationship between workers and ownership. Under HRMES, professionals and workforce groups could collectively invest their monetized human capital into productive sectors such as infrastructure projects, enterprises, manufacturing systems, or technology platforms. The returns generated from these activities would then be distributed based on each participant’s contribution, effectively turning workers into stakeholders rather than only wage earners.

Sharma believes that such a model could help address long-standing structural challenges including inequality, unemployment, and restricted access to capital. By recognizing skills and productivity as a form of collateral, the system could broaden participation in economic activities while reducing dependence on traditional debt-based financing.

He further stated that HRMES could reshape the conventional understanding of poverty by lowering barriers that prevent individuals from entering productive economic systems.

“When human capability itself becomes the primary economic asset, many of the limitations caused by lack of financial capital can be reduced significantly,” Sharma noted.

The proposal also seeks to address the financing gap repeatedly highlighted by international institutions. Current estimates suggest that low- and middle-income countries require between $1.5 trillion and $2.7 trillion annually to achieve development goals. Sharma argued that treating human capital as an investable asset class could unlock substantially greater economic value and create alternative pathways for financing development.

He outlined a broader framework involving the development of large-scale manpower databases, workforce capability assessments, and the issuance of financial instruments backed by human productivity valuations. According to Sharma, such mechanisms could gradually help economies transition away from traditional debt-driven financial systems toward productivity-based asset-backed economic models.

Sharma also warned about the wider geopolitical and social implications of failing to address the growing employment gap. He stated that prolonged economic exclusion on such a large scale could contribute to instability, social fragmentation, and rising global tensions.

In his appeal, he called on the World Bank and other international organizations to initiate pilot projects based on the HRMES framework, particularly in developing economies where population growth and youth unemployment remain highest. He suggested that these pilot programs could help shift global development strategies from project-centered lending models to population-centered economic participation systems.

“The global workforce should not be viewed as a burden, but as one of the world’s largest untapped economic assets,” Sharma said, emphasizing the need for economies to rethink how value, work, and investment are defined in the future.

He also expressed his willingness to collaborate with economists, policymakers, development agencies, and global institutions to further refine and expand the framework, stressing that collective international dialogue would be essential in addressing employment challenges of this scale.

As economies worldwide continue adapting to technological disruption, automation, demographic transitions, and rapidly evolving labour markets, proposals such as HRMES are adding new dimensions to the ongoing debate around sustainable, inclusive, and employment-oriented economic growth for the future.