In a bid to counter high underemployment and unemployment rate, India is expected to generate around 10 million job opportunities per annum. According to a research by Motilal Oswal said that this figure can be roughly translated to 8.3 lakh or 830,000 jobs every month for the next 12 years.
Meanwhile, the Indian economy is estimated to see an increase of labour force by eight million annually over the next 15 years. However, this number only represents a fraction of the total job requirement needed in the country. Comprehensive estimates of annual jobs should include one’s assumptions about underemployment in the economy, Money Control reports.
In the Motilal Oswal research report, the agency’s calculations suggest that there are about 29 million underutilised workers in India, another four million are discouraged female workers who are currently out of the labour force due to non-availability of suitable jobs, while the other three millions are those looking to turn into a regular wage-paying or salaried job. When put together, these imply underemployment stats of about 36 million or around four percent of the population aged above 15 years.
Therefore, if India wants to reduce almost all underemployment by 2030, and its unemployment rate and labour force participation rate (LFPR) remains unchanged, the economy needs to create 10 million jobs per annum, or 0.83 million job openings per month, up to 2030.
On the other hand, the International Labour Organisation’s projections suggested that if LFPR remains unchanged at 53.9 percent in the future, there will be about 8.8 million people added to the nation’s labour force every year in the five years ending 2020, while it will fall to 7.6 million persons per year in the 20s.
Indian government itself sets to creation goals of 100 million manufacturing jobs during the seven-year period ending 2022, implying annual jobs creation of about 14 million. However, the Motilal Oswal research report sees a requirement of more than one million jobs per month.