Despite the economic growth in the country between 2004-05 and 2017-18 the employment rate has failed to keep pace with the expanding working-age population. This has been revealed by a collaborative study from the Indian Institute of Management Lucknow (IIM Lucknow), researchers from Birla Institute of Technology and Science, Pilani, and the Ministry of Agriculture and Farmers Welfare. In the study, the researchers analysed data from the National Sample Survey Office (NSSO) Employment and Unemployment Survey, as well as the Periodic Labour Force Survey Dashboard, according to an official release.
They discovered that while the agricultural sector employs a large number of young people, it contributes relatively little value to the overall economy, resulting in substantial employment challenges. Conversely, non-farm sectors, which have greater economic potential, have shown less inclination to hire, despite their capacity to stimulate economic growth, the release mentioned.
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The study highlights a decline in employment since the 1990s, a recovery in 2004–05, and near-stagnation in 2011–12. Despite the significant economic growth during the period of 2004–05 to 2017-18, job creation remained insufficient, leading to a phase of ‘jobless growth,’ where workers were underutilized despite the increasing working-age population (ages 15 to 64), as per the release.
“The new employment structure relies on non-standard types like casual, contract, and fixed-term employment, intertwined with social hierarchy and discrimination, resulting in new forms of precariousness and extending general disparity in the labour market,” D. Tripati Rao, of IIM-Lucknow said.
Several factors contribute to this phenomenon, including a high proportion (55%) of self-employed workers in India compared to 33% in the US. Gender disparities in employment persist, and there is a rise in unemployment among highly educated youth. The short-term gig and platform economy is expanding, expected to reach 23.5 million workers by 2030, according to NITI Aayog, but these workers lack job security in the informal sector.
The analysis proposes a crucial policy intervention: making the manufacturing sector more labor-intensive to foster inclusive growth. The researchers argue that this approach will create significant linkage effects, benefiting various industries. Additionally, recent improvements in health and education in India offer hope for converting unemployed youth into a skilled and high-quality workforce, it added.
Source: financialexpress
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