Monday, October 17th, 2016

India to lose 7 million jobs by 2050: Report

Narada Desk | October 17, 2016 4:49 pm Print
The report claims that the rise in unemployment is because the sectors which are largest contributor of jobs are worst-affected.

In last four years, India has lost 550 jobs every day and if this trend continue, employment will fall by 7 million within 2050,a study by Delhi-based civil society group PRAHAR claimed in its study.

Farmers, petty retail vendors, contract labourers and construction workers are the most vulnerable sections facing severe livelihood threats today in India, it added. The data released by the Labour bureau in early 2016 informed that India created only 1.35 lakh jobs in 2015 in comparison to 4.19 lakh in 2013 and 9 lakh in 2011.

“A deeper analysis of the data reveals a rather scary picture. Instead of growing, livelihoods are being lost in India on a daily basis. As many as 550 jobs are lost in India every day (in last four year as per labour bureau data) which means that by 2050, jobs in India would have got reduced by 7 million, while population would have grown by 600 million,” the statement said. It is clear from the data that job creation in India is moving down continuously, which is very alarming, it pointed out.

The report claims that the rise in unemployment is because the sectors which are largest contributor of jobs are worst-affected. Agriculture employs 50% of the working population, while Small and Medium Sized Enterprises (SME) sector contributes 40%, and the noteworthy point is that organised sector barely contributes less than 1% to Indian Employment levels.

The study suggests that India only has about 30 million jobs in the organised sector and nearly 440 million in the unorganised sector.

The data released by World Bank suggests that percentage of employment in agriculture out of total employment in India has come down to 50% in 2013 from 60% in 1994. Whereas, it is to be noted that labour intensity of SME’s is four times higher than that of large firms, the statement said.

The report further added that the multinationals are particularly capitalistic, a fact vindicated during investment commitments of USD 225 million made for the next five years during the Make in India Week in February 2016. It would translate into creation of only 6 million jobs went unnoticed.
“India needs to go back to the basics and protect sectors like farming, unorganised retail, micro and small enterprises which contribute to 99 per cent of current livelihoods in the country. These sectors need support from the government not regulation. India needs smart villages and not smart cities in the 21st century,” it concluded.