Has this government created adequate jobs for youth?—a typical question that crops up every time we are going into general elections.
Without a shadow of a doubt, job creation is an important economic indicator. But isn’t it amusing that despite India being the fastest growing economy, among major economies of the world, it still faces the problem of jobless growth?
Every year, nearly 12 million young people are expected to join the labour market for the next two decades. And according to a World Bank Report, India must generate 8.1 million new jobs annually to maintain its employment rate.
Are we keeping pace with it? Let’s check India’s progress card.
As per data published by the Labour Ministry, the Indian economy generated 82.95 lakh jobs (close to 8.3 million) between September 2017 and September 2018. In FY 2018-19, India’s formal sector created 51.84 lakh or (5.2 million) jobs.
Job creation trends in India
(Source: Labour Ministry)
Job growth is picking up but far from ideal
It’s noteworthy that only 10% of India’s labour force has jobs in the formal sector. The real challenge is to get more people in formal employment. Unavailability of any dependable employment indicator for the informal economy remains a challenge for India.
As news reports suggest, the job creation in the formal sector has doubled in September on a Month-on-Month basis. But the moot question is, will that be enough for an economy which is expected to grow at 7.3% in FY 2018-19 and at 7.5% in FY 2019-20.
For now, we are saving the day.