{"id":211010,"date":"2022-10-18T20:36:46","date_gmt":"2022-10-18T15:06:46","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=211010"},"modified":"2022-10-18T20:39:50","modified_gmt":"2022-10-18T15:09:50","slug":"lets-step-up-strategic-efforts-to-mobilize-indias-labour-potential","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/lets-step-up-strategic-efforts-to-mobilize-indias-labour-potential\/","title":{"rendered":"Let\u2019s step up strategic efforts to mobilize India\u2019s labour potential"},"content":{"rendered":"\n

Source<\/strong>: The post is based on an article\u00a0\u201cLet\u2019s step up strategic efforts to mobilize India\u2019s labour potential\u201d <\/strong>published in\u00a0Live Mint<\/strong>\u00a0on\u00a018th<\/sup> October 2022<\/strong>.<\/p>\n

Syllabus: GS 2 \u2013 Governance<\/strong><\/p>\n

Relevance:\u00a0<\/strong>ways to utilize demographic dividend in India<\/strong><\/p>\n

News: <\/strong>\u00a0India is at a stage where population growth is expected to slow down in the next two decades along with a significant increase in the share of the working-age population.<\/strong><\/p>\n

This will provide India with a demographic dividend opportunity window. Therefore, India needs policies for its majority working age population to ensure labour force mobilization.<\/p>\n

What does the data say?<\/strong><\/h5>\n

As per the National Sample Survey Office\u2019s Periodic Labour Force Survey 2020-21, India\u2019s labour force participation rate for all age groups is around 41.6% (57.5% for males, 25% for females).<\/p>\n

It is also expected that India\u2019s working age population will grow roughly by 9.7 million per year from 2021 to 2031 and 4.2 million annually in the 2031-41 period.<\/p>\n

However, mobilizing the demographic dividend into the workforce is major issue. Therefore, the competitiveness framework can act as a base for India to understand the drivers of labour force mobilization.<\/p>\n

What is competitiveness approach and how can it be beneficial?<\/strong><\/h5>\n

The competitiveness approach defines national competitiveness in terms of the expected level of output per potential worker.<\/p>\n

The \u2018output per potential worker\u2019 indicates a larger productivity. It includes the productivity of the employed as well as the ability of a country to mobilize its working-age population.<\/p>\n

The term \u2018potential\u2019 indicates the economic growth by not only including the employed workforce but also including the total workforce that can be utilized in an economy.<\/p>\n

Therefore, competitiveness is linked to both components of output per potential worker \u2013 a) output per employed person and b) the ability of a country to mobilize its workforce.<\/p>\n

This competitiveness approach could be useful for understanding drivers of labour mobilization and it would also help in utilizing the country\u2019s demographic dividend and formulate policies accordingly.<\/p>\n

However, the potential to mobilize the labour force depends on multiple factors. One of the most important factors is the creation of jobs. Jobs should increase with the increasing working-age population.<\/p>\n

What steps have been taken by India to ensure job creation?<\/strong><\/h5>\n

As per Finance minister Nirmala Sitharaman, the Production-Linked Incentive (PLI) scheme across 14 sectors has the potential to generate 6 million jobs over the next five years.<\/p>\n

Around 55.6 million people have undergone skill training since 2015 under the Skill India Mission and through various skill development programmes.<\/p>\n

However, out of these workforces the participation of women is not up to the mark.<\/p>\n

What are the problems with the women in labour force market?<\/strong><\/h5>\n

As per the Periodic Labour Force Survey Annual Report 2020-21, the all-India female labour force participation rate (LFPR) has increased to 25.1%, as compared to 22.8% a year ago.<\/p>\n

However, female workforce participation continues to remain at a low level in India due to a number of factors such as lack of jobs, the burden of unpaid care work, and cultural norms.<\/p>\n

What is the way forward for India?<\/strong><\/h5>\n

First,<\/strong> India needs efforts to promote greater labour force mobilization that facilitates multiple entry points for an individual into the labour force.<\/p>\n

Second, <\/strong>skilling should not only be limited a working age (20 to 65) but it should be a lifelong task along with the regular upgradation of skills.<\/p>\n

Third,<\/strong> India also needs to make efforts for greater labour mobilization in different states as the working-age population varies across Indian states.<\/p>\n