Indian Economy Needs 78.5 Lakh Non-Farm Jobs Annually Until 2030: Economic Survey 2023-24

The Indian economy needs to generate an average of nearly 78.5 lakh jobs annually until 2030 in the non-farm sector to accommodate the increasing workforce, according to the Economic Survey for 2023-24. The survey, presented in Parliament, provides a broad estimate of the number of jobs that the economy needs to create. The survey also stated that not everyone within the working age will seek jobs. Some will be self-employed, and some will be employers. Additionally, the report emphasized that economic growth is about creating livelihoods, and it is necessary for governments at all levels and the private sector to work together towards this goal.

It mentioned that the share of agriculture in the workforce will gradually decline from 45.8% in 2023 to 25% in 2047. Furthermore, it highlighted that the demand of 78.5 lakh jobs in the non-farm sector per year could be met by supplementing existing schemes such as PLI, MITRA Textile scheme, and MUDRA, etc. The survey also indicated that the growing employment of flexible workers through staffing companies can be a means of ensuring social security for informal workers. It pointed out the challenges of formalizing a growing workforce, facilitating job creation in sectors that can absorb workers transitioning from agriculture, and ensuring social security benefits for those in regular wage/salaried employment.

Recommendations were made for state governments to ease the compliance burden and reform laws on land to help facilitate hiring. Additionally, the report suggested that India should invest in research and guide the development of AI towards shared prosperity. It also emphasized the importance of addressing unpaid care work and developing infrastructure for creche and elderly care to support female participation in paid work. The report highlighted the responsibility of businesses for employment generation and the consequent impact on social stability. It noted that while the new Labour Codes marginally improved some regulatory limits, there is still progress to be made in operationalizing these Codes and avoiding reintroduction of older restrictions by some states.

Lastly, the report suggested that labor laws should be reviewed to re-evaluate incentives for employers, with a focus on achieving better outcomes for economic growth and prosperity in the manufacturing sector. Flexible labor laws were proposed as a potential way to unleash economic potential, promote gender inclusivity, and attract industrial investment.