Key Points
- India needs 10 million new jobs each year from FY25 to FY30.
- Focusing on affordable housing can create more jobs.
- IT hubs in smaller cities can ease the pressure on bigger cities.
- Shifting support to labour-intensive manufacturing is important.
- India added 196 million jobs in the last 20 years.
- More women joining the workforce has boosted the Labour Force Participation Rate.
Looma News
A Goldman Sachs report states that India will need about 10 million new jobs every year from FY25 to FY30 to maintain a 6.5% growth rate. This growth is important for the country’s economic health.
Job Creation Strategies
Encouraging affordable housing projects is crucial since this area employs over 80% of the construction workforce. Boosting real estate can create many job opportunities across different skill levels.
Setting up IT hubs in smaller cities and Global Capability Centres (GCCs) can help relieve some of the crowding in bigger cities while also increasing job opportunities in less developed areas.
It’s also important to shift support towards labour-intensive manufacturing, like textiles, food processing, and furniture, to create jobs for workers with lower to medium skills. While the government’s Production-Linked Incentive (PLI) schemes have mainly helped more capital-heavy industries, there’s a growing focus on labour-intensive sectors like textiles, footwear, toys, and leather goods.
Employment Trends
In the past 20 years, India has added about 196 million jobs, with around two-thirds of these positions created in the last decade. Many workers have moved from agriculture to construction and service jobs. The construction sector is a key job creator, making up about 13% of total jobs.
Investment in real estate and infrastructure has not only created jobs but also improved incomes for low- to medium-income households. The services sector, which accounts for about 34% of total jobs, has seen significant growth, especially in retail, which has adapted to the digital shift, creating roles in inventory management, packaging, and delivery.
Labour Force Participation
India’s Labour Force Participation Rate (LFPR) rose from 50% in FY18 to 60% in FY24, largely thanks to more women entering the workforce, especially in rural areas. This increase is due to better measurement methods, financial support for women, and more opportunities in small businesses.
India’s changing demographics provide a unique chance over the next 20 years to take advantage of a lower dependency ratio, with many working-age people joining the labour market. Good job creation strategies are essential for keeping the economy growing.
