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Resource centre on India's rural distress
 
 

Needed: Quality jobs for all -Amir Ullah Khan

-Deccan Herald

Improving Workforce Participation

Unemployment at 7.9%! Many may wonder why so much is made of a ratio that has been hovering between 6% and 8% since 2017. In India, when 7% lose their jobs, it means more than 40 million are without work. In December 2021, the CMIE informed us that 53 million Indians were unemployed. Assuming that each individual supports at least four other dependents in the household, it means just about a quarter of a billion of our population lost its means of livelihood. This is in addition to the at least 300 million who were already reeling under poverty. When you look at these numbers, the size of the tragedy becomes clear. 

The Periodic Labour Force Survey 2019-20 informs us that a third (35.9%) of workers are self-employed. Regular salaried workers constitute 25% of the total workforce. Of the self-employed, half (51%) are engaged in Agriculture and allied activities. About a third of them (34%) are in the services sector. These numbers should give our policymakers enough to think about. We are entering a new debate between job-creation and job-seeking, with a clear thrust towards creation, despite evidence to the contrary. The other debate we see is between jobs in Manufacturing versus jobs in Services. Here, we trust in Manufacturing, once again despite the evidence. The real question to ask is: Why are people, despite high levels of poverty, unwilling to look for jobs? 

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