The study titled “Pathway to Jobs” led by economist Farzana Afridi said that the country’s labor force has increased by 9 crores since 2017-18, only 6 crore new jobs have been created during the same period. A large part of future employment – about 28 crore jobs – is estimated to come from the service sector.
This report underlines that labor-intensive investment in both manufacturing and services can double overall employment, thanks to the inter-regional linkage. However, it also notes that employment growth is being forced by a stable manufacturing sector, decline in intensity of labor, and lack of skilled workers.
The report said, “The workforce share in agriculture has declined, but the manufacturing has not taken a sluggish.”
While some progress has been made-especially in the service sector, the skill difference in the rise of high skills in the service sector is widespread. In 2018, 92% of workers had a lack of training; By 2024, the number had fallen to 65%, but still, only 4% of workers took formal training.
To deal with this challenge, economists suggest expanding vocational education and allowing students to allow selection between educational and skill-based tracks. They also recommend macro-level policy changes, including high public spending, tax deduction, investment encouragement, and reducing labor rules to encourage employment generation.
With input from toi
