Experts at Davos Highlight Importance of Price Stability and Tech Employment for Social Advancement
In developing countries, 80% of the population is engaged in informal employment, which does not provide them with social security or long-term job stability. However, experts at the World Economic Forum’s Davos meeting have identified two crucial factors to accelerate social mobility and expand the middle class: price stability and job creation in dynamic sectors, such as high technology.
Understanding the Middle Class
According to Andy Beshear, Governor of Kentucky, USA, the middle class comprises workers with sufficient income to cover their monthly expenses and still have some disposable income for family vacations. Beshear emphasized that middle-class jobs should also provide access to social security and health protection.
Beshear explained during the “Can We Save the Middle Class?” session at Davos 2026 that post-pandemic, it’s no longer enough to have income sufficient for basic expenses and an occasional vacation. Now, it’s essential to ensure that these resources have purchasing power.
The Role of Technology Sector in India
Salil S. Parekh, CEO and Managing Director of Infosys Limited, shared his insights on India’s tech sector growth. When the Indian government prioritized education in technology and population training in advanced technologies, the sector became a growth and social well-being multiplier.
Parekh noted that this strategic focus accelerated social mobility, increased the middle class, and generated benefits for society as a whole. A more affluent population drives consistent and constant consumption, fueling economic growth.
Defining the Middle Class Globally
Christy Hoffman, General Secretary of the UK-based UNI Global Union, acknowledged that generalizing the concept of a middle class is not applicable worldwide. In some advanced economies, the term may not even exist.
Hoffman recognized that in developing nations, 80% of the population works in informal employment, lacking social security and long-term job stability. She pointed out that governments have struggled to reverse this informality, which has worsened due to inflation following the pandemic.
Key Questions and Answers
- What is the middle class? The middle class comprises workers with sufficient income to cover monthly expenses and still have disposable income for family activities, along with access to social security and health protection.
- Why are price stability and tech jobs important for social mobility? Price stability ensures that middle-class income maintains purchasing power, while tech job creation in dynamic sectors fosters economic growth and societal well-being.
- How has India’s focus on technology education impacted its economy? By prioritizing technology education and workforce training, India’s tech sector has become a significant driver of growth and social well-being, accelerating social mobility and expanding the middle class.
- What challenges do developing nations face in building a robust middle class? Developing countries struggle with high informal employment rates, which offer no social security or long-term job stability. Inflation following the pandemic has further exacerbated this issue.
