<\/p>\n
News:<\/span><\/b> Recently, the <\/span>62nd annual conference <\/span><\/b>of the <\/span>Indian Society of Labour Economics<\/span><\/b> was concluded at the Indian Institute of Technology, Roorkee. <\/span><\/p>\n In this conference, various useful papers were presented related to the Indian Economy.<\/span>\u00a0<\/span><\/p>\n India is facing severe unemployment. There were 28 million unemployed persons in 2019-20, out of which 24 million were in the 15-29 age group. It can lead to closure of the<\/span> \u2018demographic dividend\u2019 window<\/span><\/b> of India.<\/span>\u00a0<\/span><\/p>\n India\u2019s <\/span>growth elasticity of employment <\/span><\/b>is low as compared to some other Asian comparators. In fact, has also been declining.<\/span>\u00a0<\/span><\/p>\n India\u2019s GDP has not been registering robust growth. The repeated covid shocks, has eroded the <\/span>growth potential<\/span><\/b> of the economy. The small businesses, especially MSMEs, have been impacted. There have been s<\/strong><\/span>upply-chain disruptions. <\/span><\/b>The Russia-Ukraine conflict has f<\/span>urther exacerbated these disruptions.\u00a0<\/span>\u00a0<\/span><\/p>\n Around 90% of the <\/span>employed workforce<\/span><\/b> is involved in <\/span>unskilled or low-skill jobs<\/span><\/b>. Further, around 35-40% of graduates and technical graduates are unemployed and not employable.,\u00a0<\/span>\u00a0<\/span><\/p>\n Among those who are employed, 90% are employed in unskilled or low-skill jobs<\/strong>.<\/p>\n Unemployment rate is as high as 35-40% among graduates and technical graduates. Evidently, despite a relatively high level of education, many unemployed graduates are not employable<\/p>\n The workforce share of industry in India is 6% higher than the norm. Workers have mostly moved to the <\/span>low-skill<\/span><\/b> or <\/span>unskilled jobs <\/span><\/b>in the industry<\/span> like<\/span><\/b> construction industry <\/span><\/b>as well as trade, hotels and transportation industry.<\/span>\u00a0<\/span><\/p>\n The workforce share of services is very low. It is because <\/span>high-value-added services<\/span><\/b> like financial and professional services, infotech and communication services, etc, are not employment-intensive.\u00a0<\/span>\u00a0<\/span><\/p>\n The challenge of <\/span>high unemployment<\/span><\/b> cannot be tackled without adequate GDP growth<\/span>\u00a0<\/span><\/p>\n \u00a0–<\/strong> Annual GDP of India must grow at <\/span>13%<\/span><\/b> to spur an annual employment growth rate of <\/span>1.5% <\/span><\/b>so that 90 million jobs can be created between 2023 and 2030 to clear the backlog of youth unemployment.\u00a0<\/span>\u00a0<\/span><\/p>\n There has to be<\/span> a radical structural transformation. <\/span><\/b>The structural transformation requires <\/span>different policy approaches<\/span><\/b> at different levels<\/span>.\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n –<\/strong> The <\/span>strategic sectors <\/span><\/b>should be promoted where labour absorption can be very high in India.\u00a0<\/span>\u00a0<\/span><\/p>\n –<\/strong> The focus should be on <\/span>construction <\/span><\/b>and <\/span>low-skill services<\/span><\/b> where the bulk of the Indian labour force is equipped to handle at present. For example, Major infrastructure programmes can be undertaken.<\/span>\u00a0<\/span><\/p>\n –<\/strong> The high value jobs should be scaled up. For this, <\/span>good quality education<\/span><\/b> and <\/span>skilling<\/span><\/b> should be undertaken as a long-term strategy.<\/span>\u00a0<\/span><\/p>\n Source<\/span><\/b>: The post is based on an article \u201cIndia needs an economic reboot for rapid employment-heavy growth<\/strong>\u201d published in the Livemint<\/strong> on 15<\/strong><\/span>th<\/strong> Apr 22<\/strong>.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" News: Recently, the 62nd annual conference of the Indian Society of Labour Economics was concluded at the Indian Institute of Technology, Roorkee. In this conference, various useful papers were presented related to the Indian Economy.\u00a0 Why a major structural transformation is necessary for high long-term growth?\u00a0\u00a0 India is facing severe unemployment. There were 28 million… Continue reading India needs an economic reboot for rapid employment-heavy growth\u00a0<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10501],"class_list":["post-179519","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704816165},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/179519","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=179519"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/179519\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=179519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=179519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=179519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Why a major structural transformation is necessary for high long-term growth?<\/span><\/b>\u00a0<\/span>\u00a0<\/span><\/h5>\n
What is the work profile of India’s workforce?<\/span><\/b>\u00a0<\/span><\/h5>\n
Ways Forward<\/span><\/b>\u00a0<\/span><\/h5>\n