The demand can be met by supplementing the existing schemes of PLI (60 lakh employment generation over 5 years), MITRA Textile scheme (20 lakh employment generation) and MUDRA, etc., suggests Economic Survey
According to the Economic Survey for 2023–24, the Indian economy must create an average of almost 78.5 lakh jobs annually in the non-farm sector until 2030 to accommodate the growing workforce.
A general estimate of the quantity of jobs that the economy must create was provided by the Survey, which was presented to Parliament.
It went on to say that no one of working age would look for employment. A portion of them will work for themselves, and some of them will also be employers.
According to the Survey, economic growth is more about creating livelihoods than it is about jobs. To achieve it, the private sector and all levels of government will need to work together.
According to the report, the workforce's percentage of workers in agriculture will progressively drop from 45.8 percent in 2023 to 25 percent in 2047.
According to the Survey, "in order to accommodate the growing workforce, the Indian economy needs to generate an average of nearly 78.5 lakh jobs annually until 2030 in the non-farm sector."
It was suggested that the current PLI (60 lakh employment generation over 5 years), MITRA Textile scheme (20 lakh employment generation), MUDRA, etc., be supplemented to meet the demand of 78.5 lakh jobs in the non-farm sector annually.
According to the statement, staffing companies are increasingly hiring flex workers, who can then be used as a means of guaranteeing social security for unofficial workers.
It made note of the persistent difficulties in formalising an expanding labour force, enabling the creation of jobs in industries that can take in workers leaving the agricultural sector, and guaranteeing social security benefits for those in regular wage or salaried employment.
It also implied that state governments could facilitate hiring by reducing the burden of compliance and changing land-related laws.
At the same time, it was suggested that India, which hopes to become a developed country by 2047, needs to participate in the significant job transformation that artificial intelligence has brought about and is likely to continue to expand upon.
It stated that because of the complexity and unpredictability of the effects of automation on labour, the course of technological advancement is still subject to political and economic forces.
India thus needs to invest in research and steer the AI bandwagon towards shared prosperity, it suggested, adding that something as basic and age-old as unpaid care work needs attention too.
It stated that the creation of an elderly care and childcare infrastructure that is reasonably priced, dependable, and of high quality is the barrier to women entering the workforce for pay. This should be decided by comparative advantage and personal preference rather than gender.
Businesses must consider their responsibility for creating jobs and the ensuing impact on social stability in addition to their fascination with AI and fear of losing their competitive edge, the report stated.
It was mentioned that certain regulatory limitations (such as daily work hours) were only slightly improved by the new labour codes.
It did note, though, that many states are found to be reintroducing the previous restrictions under the new laws, and that the Codes have not yet been fully operationalized.
It recommended that labour laws be reexamined in order to reassess employer incentives, with an emphasis on improving outcomes for prosperity and economic growth in the manufacturing sector.
It said that enacting more lenient labour laws could spur significant economic growth, advance gender equality, and draw in business investment. Despite subsidies, farm policies need to be reoriented.