How many jobs India must generate in a year
India's economy needs to create approximately 78.5 lakh jobs each year in the non-farm sector until 2030, according to the Economic Survey 2024, presented in the Parliament today. The survey emphasized that economic growth is more about generating livelihoods than just jobs. It also noted that not everyone of working age will seek employment as some may choose self-employment or become employers themselves.
Existing schemes could meet job demand, survey suggests
The Economic Survey suggested that the demand for 78.5 lakh jobs per year could be met by supplementing existing schemes such as Production Linked Incentive (PLI), which is expected to generate 60 lakh jobs over five years, and the PM Mega Integrated Textile Region and Apparel (MITRA) textile scheme, projected to create 20 lakh jobs. The survey also highlighted the increasing employment of flexi workers through staffing companies as a potential means of ensuring social security for informal workers.
Challenges and solutions for burgeoning workforce
The Economic Survey identified long-standing challenges such as formalizing a growing workforce, enabling job creation in sectors that can absorb workers moving from agriculture, and ensuring social security benefits for those in regular wage or salaried employment. It suggested that state governments could ease the compliance burden and reform land laws to facilitate hiring. The survey also noted the gradual decline of agriculture's share in the workforce from 45.8% in 2023 to an estimated 25% by 2047.
Impact of automation and AI on job market
The survey highlighted the significant reshaping of jobs due to artificial intelligence (AI) as India aims to become a developed nation by 2047. However, it warned that the impact of automation on workers is complex and uncertain, with the direction of technological change susceptible to political economy forces. The survey emphasized the need for India to invest in research and steer the AI bandwagon toward shared prosperity.
Addressing unpaid care work and boosting female participation
The Economic Survey 2024 also underscored the importance of addressing unpaid care work and developing an affordable, reliable, and quality creche and elderly care infrastructure to boost female participation in paid work. It stated that the new Labour Codes have marginally improved some regulatory limits, such as daily work hours. However, these codes are yet to be fully operationalized, with many states reintroducing older restrictions under the new laws.
