Even at a growth rate of 7%, India will have to struggle a lot to generate employment

Mumbai: India will struggle to create enough jobs for its growing workforce over the next decade even as economic growth remains high at 7 per cent, a report says, adding that sustained efforts by the government will be necessary to boost employment and skills in the country.

The report estimates that 1.20 crore jobs will need to be created annually over the next decade to accommodate new job seekers entering the country's job market.

With an economic growth rate of seven percent, India will be able to create 80 to 90 lakh jobs per year. The quality of employment being created in India is a big challenge.

Forty-six percent of India's workforce is still engaged in agriculture, but the sector contributes less than twenty percent to the country's GDP.

In 2023, 11.40 percent of total employment was in the manufacturing sector, which was less than in 2018. It can be said that in terms of employment in 2023, the manufacturing sector has not been able to recover from the blow of Corona.

The issue of unemployment was becoming important in the recent Lok Sabha elections.

The country's unemployment rate rose to an eight-month high of 9.20 percent in June after remaining at 7 percent in May. According to data from the Center for Monitoring Indian Economy, this figure was 8.50 in June last year.