In order to accommodate both underutilised labourers and incoming workforce , India must create 11.5 crore jobs by 2030, according to a May 20 research by Trinh Nguyen, a senior economist at Natixis SA, which was cited by Bloomberg.

“By 2030, one out of five working-age people on Earth will be Indian, and India needs to create 115 million (11.5 crore) jobs by 2030 to both absorb underutilised working and incoming labour force.” Trinh Nguyen wrote in the report, “”the country will need to generate 16.5 million (1.65 crore) jobs per year, up from 12.4 million (1.24 crore) per year for the last decade, and of which, 10.4 million (1.04 crore) will need to be formal jobs.”

According to Trinh Nguyen, this kind of employment growth requires support from both the manufacturing and service sectors. Nguyen continued, “The next administration needs to seize the manufacturing train and take advantage of the geopolitical and demographic tailwinds.”

The most recent Periodic Labour Force Survey (PLFS) indicates that the percentage of adults over 15 who participated in the labour force in urban areas increased to 50.2 percent from 48.5 percent from January to March 2023 to March 2024.

The female urban Labour Force Participation Rate (LFPR) concluded the next two calendar years at 22.3 percent and 25 percent, respectively, after standing at 20.2 percent in the last quarter of 2021.

India still behind its Asian counterparts on this measure, notwithstanding the progress. In 2023, China’s female LFPR is 71% and Vietnam’s is 75%, meaning the government has a lot of ground to make up on this front.

According to a recent analysis by Trinh Nguyen, India would require 16.5 million jobs annually instead of the 12.4 million it has been creating over the last ten years in order to increase the female labour force participation rate to 50% by 2030. 61 million employment were produced for women and 51 million for men out of the 112 million jobs created under NDA I and II.

(Adapted from MoneyControl.com)

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