India's Job Creation Challenge: 7.85 Million Non-Farm Jobs Needed Annually by 2030

India must labour to generate 78.5 lakh non-farm jobs every year - Times of India

India needs to generate 78.5 lakh jobs a year on average until 2030 in the non-farm sector to cater to the rising workforce, Economic Survey estimated, urging the private sector to contribute. The Indian economy needs to generate an average of nearly 78.5 lakh jobs annually until 2030 in the non-farm sector to cater to the rising workforce, the survey has estimated. It said that to meet the demand of 78.5 lakh jobs in the non-farm sector per year, there is scope to supplement the existing schemes of production linked incentive (60 lakh employment generation over 5 years), MITRA textile scheme (20 lakh employment generation), MUDRA, and others while boosting their implementation. The survey said that state govts can grease the wheels of hiring by businesses by easing the compliance burden and reforming laws on land, etc, to suit the priorities of development. It said the jobs are created in the private sector and India's corporate sector has never had it so good as now, with profitability at a 15-year high in FY24. Profits had quadrupled between FY20 and FY23. "Businesses have an obligation to themselves to strike the right balance between deployment of capital and deployment of labour. As important, capital and labour shares of income have to be fair," said the survey. "In their fascination for AI and fear of erosion of competitiveness, businesses have to bear in mind their responsibility for employment generation and the consequent impact on social stability," it added. Calling for a rebalancing of labour regulations for generating employment, the survey said current labour regulations have unintended adverse repercussions for the general workforce, and women specifically. The report showed that a comparison with other countries reveals that India's stricter overtime wage regulations are potentially hindering the growth of the manufacturing sector by driving production to nations with lower overtime costs.

India Needs To Generate 78.5 Lakh Jobs In Non-farm Sector Annually Till 2030: Economic Survey - News18

The Indian economy needs to generate an average of nearly 78.5 lakh jobs annually until 2030 in the non-farm sector The Indian economy needs to generate an average of nearly 78.5 lakh jobs annually until 2030 in the non-farm sector to cater to the rising workforce, according to the Economic Survey for 2023-24. The Survey tabled in Parliament on Monday provided a broad estimate of the number of jobs that the economy has to generate. Economic Survey 2024 Live Updates It further said that everyone in the working age will not seek jobs. Some of them will be self-employed and some of them will be employers too. More than jobs, the Survey added, economic growth is about generating livelihoods. Governments at all levels and the private sector will have to strive together for it. It said that the share of agriculture in the workforce will gradually decline from 45.8 per cent in 2023 to 25 per cent in 2047. "Consequently, the Indian economy needs to generate an average of nearly 78.5 lakh jobs annually until 2030 in the non-farm sector to cater to the rising workforce," the Survey said. The demand of 78.5 lakh jobs in the non-farm sector per year, can be met by supplementing the existing schemes of PLI (60 lakh employment generation over 5 years), MITRA Textile scheme (20 lakh employment generation) and MUDRA, etc., it suggested. The rising employment of flexi workers through staffing companies can be a channel for ensuring social security for informal workers, it stated. It pointed out that there remains long-existing challenges of formalising a burgeoning workforce, facilitating job creation in sectors which can absorb workers shifting from agriculture, and ensuring social security benefits for those in regular wage/salaried employment. It further suggested that state governments can grease the wheels of hiring by easing the compliance burden and reforming laws on land. Concurrently, the employment landscape is fast changing worldwide, and India, aspiring to be a developed nation by 2047, must partake in the massive reshaping of jobs that AI has and is likely to further spin off, it suggested. The impact of automation on workers being complex and uncertain, the direction of technological change remains susceptible to forces of political economy, it noted. India thus needs to invest in research and steer the AI bandwagon towards shared prosperity, it suggested, adding that something as basic and age-old as unpaid care work needs attention too. The development of an affordable, reliable, and quality creche and elderly care infrastructure is the Achilles heel for female participation in paid work, which should be determined by comparative advantage and choice rather than dictated by gender, it stated. In their fascination for AI and fear of erosion of competitiveness, businesses have to bear in mind their responsibility for employment generation and the consequent impact on social stability, it said. It noted that the new Labour Codes marginally improved some of regulatory limits (like daily work hours). However, it stated that the Codes are yet to be fully-operationalised and many states are found to be reintroducing the older restrictions under the new Laws. It suggested that labour laws need to be reviewed to re-evaluate incentives for employers, with a focus on achieving better outcomes for economic growth and prosperity in the manufacturing sector. Implementing more flexible labour laws could unleash substantial economic potential, promote gender inclusivity, and attract industrial investment, it stated.

Economic Survey 2024: 7.85 million non-farm jobs needed annually till 2030; over 7% fall in unemployment rate

The Indian economy needs to generate an average of nearly 78.5 lakh jobs annually until 2030 in the non-farm sector to cater to the rising workforce, according to the Economic Survey for 2023-24. The Survey tabled in Parliament on Monday provided a broad estimate of the number of jobs that the economy has to generate. It further said that everyone in the working age will not seek jobs. Some of them will be self-employed and some of them will be employers too. More than jobs, the Survey added, economic growth is about generating livelihoods. Governments at all levels and the private sector will have to strive together for it. It said that the share of agriculture in the workforce will gradually decline from 45.8 per cent in 2023 to 25 per cent in 2047. "Consequently, the Indian economy needs to generate an average of nearly 78.5 lakh jobs annually until 2030 in the non-farm sector to cater to the rising workforce," the Survey said. The demand of 78.5 lakh jobs in the non-farm sector per year, can be met by supplementing the existing schemes of PLI (60 lakh employment generation over 5 years), MITRA Textile scheme (20 lakh employment generation) and MUDRA, etc., it suggested. The rising employment of flexi workers through staffing companies can be a channel for ensuring social security for informal workers, it stated. It pointed out that there remains long-existing challenges of formalising a burgeoning workforce, facilitating job creation in sectors which can absorb workers shifting from agriculture, and ensuring social security benefits for those in regular wage/salaried employment. It further suggested that state governments can grease the wheels of hiring by easing the compliance burden and reforming laws on land. Concurrently, the employment landscape is fast changing worldwide, and India, aspiring to be a developed nation by 2047, must partake in the massive reshaping of jobs that AI has and is likely to further spin off, it suggested. The impact of automation on workers being complex and uncertain, the direction of technological change remains susceptible to forces of political economy, it noted. India thus needs to invest in research and steer the AI bandwagon towards shared prosperity, it suggested, adding that something as basic and age-old as unpaid care work needs attention too. The development of an affordable, reliable, and quality creche and elderly care infrastructure is the Achilles heel for female participation in paid work, which should be determined by comparative advantage and choice rather than dictated by gender, it stated. In their fascination for AI and fear of erosion of competitiveness, businesses have to bear in mind their responsibility for employment generation and the consequent impact on social stability, it said. It noted that the new Labour Codes marginally improved some of regulatory limits (like daily work hours). However, it stated that the Codes are yet to be fully-operationalised and many states are found to be reintroducing the older restrictions under the new Laws. It suggested that labour laws need to be reviewed to re-evaluate incentives for employers, with a focus on achieving better outcomes for economic growth and prosperity in the manufacturing sector. Implementing more flexible labour laws could unleash substantial economic potential, promote gender inclusivity, and attract industrial investment, it stated.

India needs to create 78.5 lakh non-farm jobs by 2030 to cater to rising workforce: Economic Survey

Congress calls eco survey 'cherry-picked' view, says India in its most precarious economic situationThe Economic Survey 2023-24 suggested that India had to create 78.5 lakh jobs in the non-farm sector by 2030 to cater to the rising workforce. The Survey mentioned that there was a possibility to supplement the existing schemes of Production Linked Incentive (PLI) (60 lakh employment generation over 5 years), MITRA Textile scheme (20 lakh employment generation), and MUDRA, while boosting their implementation. The survey identified that artificial intelligence (AI) was both a risk and opportunity with India's young demography. A particular risk is the BPO sector, where GenAI is revolutionising the performance of routine cognitive tasks through chatbots, and employment in the sector is estimated to decline considerably in the next ten years. But given the affinity of India's population to work with technology, as seen with the digital public infrastructure, proactive interventions by the Government and industry can position India as a key player in the AI age, the Economic Survey notes. The employment scenario is shifting towards the gig economy, said the report. According to NITI Aayog's indicative estimates based on national labour force survey data, in 2020-21, 77 lakh workers were engaged in the gig economy and as per the Economic Survey 2023-24, the gig workforce is expected to expand to 2.35 crore and form 6.7 per cent per cent of the non-agricultural workforce or 4.1 per cent of the total livelihood in India by 2029-30. The survey further said that climate change has played a possible outcome in loss of jobs. Recognising climate change as a hard reality of the present times and projections pointing towards an increase in the frequency and intensity of extreme weather events, the Survey mentions its concomitant outcome as the possible loss of jobs and productivity. India's corporate sector is on the rise, said the survey. India's corporate sector's profitability is at a 15-year high in FY24 with profits quadrupling between FY20 and FY23. It mentions that businesses have an obligation to themselves to strike the right balance between deployment of capital and deployment of labour. In their fascination for AI and fear of erosion of competitiveness, businesses have to bear in mind their responsibility for employment generation and the consequent impact on social stability.

Need to create 8 million jobs a year until 2030, says Economic Survey

The Economic Survey for 2023-24, tabled in Parliament on Monday, asked the private sector to contribute to the creation of approximately eight million jobs annually until 2030. It also cautioned companies against being overly reliant on capital-intensive technologies like artificial intelligence (AI) to reduce employment. Authored by Chief Economic Advisor (CEA) V Anantha Nageswaran and his team, the 522-page Survey, presented a day before the Union Budget, made a strong case for seeking foreign direct investments (FDI) from China to boost local manufacturing and tap the export market. It also set a conservative economic growth forecast of 6.5-7 per cent for 2024-25, at a time when a number of international agencies have lifted their growth projections for India.

Economic Survey 2023-24: Economy needs to generate nearly 78.51 lakh jobs annually in the non-farm sector

India's workforce is nearly 56.5 crore, with more than 45% employed in agriculture, 11.4% in manufacturing, 28.9% in services, and 13.0% in construction, highlights the Economic Survey 2023-24 released by the finance ministry on July 22. The survey also added that female labour force participation has been rising over the last six years, and the unemployment rate is on the decline, the survey highlighted improvements in Indian labour market indicators over the past six years, with the unemployment rate dropping to 3.2% in 2022-23. Economic Survey 2023-24 LIVE updates The survey noted that employment has recovered from pandemic shocks in both urban and rural areas. It stated, "The female labour force participation rate has been rising for six years, from 23.3% in 2017-18 to 37% in 2022-23, driven mainly by the rising participation of rural women." Amid the government's push for the infrastructure sector, the survey stated that while the services sector remains a major job creator, the construction sector has been rising in prominence lately. To meet the demands of the employment sector amid a growing population the survey pointed out that the Indian economy needs to generate nearly 78.51 lakh jobs annually in the non-farm sector. The net payroll additions under EPFO have more than doubled in the past five years, signalling healthy growth in formal employment. Economic Survey 2023-24: India's growth back to pre-COVID trends, 7%-plus growth possible in medium term On AI the survey added as artificial intelligence becomes more prevalent in various economic activities, steering technological choices towards collective welfare is crucial. Employers must balance deploying technology and labour. It suggests that agro-processing and the care economy are promising sectors for generating and sustaining quality employment. The increase in candidates undergoing skill development through the Government's flagship programs has highlighted the emphasis on 'Skill India.' However, regulatory obstacles such as land use restrictions, building codes, and limits on sectors and hours for women's employment hinder job creation. Removing these barriers is essential to boost employment and raise women's labour force participation rate. The survey states that the key areas of policy focus in the short to medium term include job and skill creation, tapping the full potential of the agriculture sector, addressing MSME bottlenecks, managing India's green transition, deftly dealing with the Chinese conundrum, deepening the corporate bond market, tackling inequality and improving our young population's quality of health. "The growth strategy for Amrit Kaal is predicated on six key areas. Firstly, there must be a deliberate focus on boosting private investment. Secondly, the growth and expansion of India's Mittelstand (MSMEs) is a strategic priority. Thirdly, the potential of agriculture as an engine of future growth must be recognised and policy impediments removed. Fourthly, there is a need to secure the financing of green transition in India. Fifthly, the education-employment gap must be bridged. And finally, focused building of state capacity and capability is required for sustaining and accelerating India's progress." the document reads. According to the survey, in the medium term, the Indian economy can grow at a rate of 7 per cent plus on a sustained basis if we build on the structural reforms undertaken over the last decade. This requires a tripartite compact between the Union Government, State Governments and the private sector. Read Comments