The recent economic survey and budget discussions share the need for the more job creation in the coming future. The country lacks jobs in comparison to the workforce. It means the increase in workforce and employable population is more than the increase in the employment creation. Thus, it creates an issue of unemployment which will ultimately hamper the economic growth of the country. The survey portrays that 7.85 million jobs are needed per year till 2030 to promote India’s economic growth.
India faces a lot of unemployment issues. Thus, the recent survey and budget discussions point out the need for around 7.85 million jobs every year for the country’s economic growth. The majority of the people are self-employed today or work in the agricultural sector. However, the contribution of the manufacturing sector to the employment creation is the least. It raises concerns about the need to increase manufacturing in the country.
According to the data, there is a 565 million workforce in India. Thus, agriculture constitutes 45% of the employment. Apart from that, the service sector is in second number with a 28.9% contribution, followed by Construction (13%), and manufacturing (11.4%). Manufacturing not only provides the least number of jobs, but it also provides low-pay jobs. The Agriculture and Service sector is expected to lead in future as well.
As we discussed above, there is 57.3% of the self-employed workforce. 18.3% are unpaid workers who work in household enterprises. While casual labour includes 21.8% and regular workers are 20.9%. The self-employed workforce spread in sectors like agriculture and services. Some have their farm where they practice farming and earn money. While others provide some kind of service online or offline to make money. It includes barber shops, clothing shops, digital marketing, etc.
Another study shows a shift of women towards self-employment. As the women from the rural areas are joining, they are also working on something of their own. While the men are stable in their previous work. The workers in India are currently having a skill gap as well. It contributes to a major factor behind unemployment. While the majority of the workforce is below 35 years of age. It consists of 65% of the workforce. The budget for 2024 can also initiate some other steps towards growth. The government can work on skill enhancement programs for the youth, Apart from that, vocational training and apprenticeship will also help. According to the data, only 2.2% of the people get vocational training.