Question

Do you know that maintaining employment growth at 2 per cent for a country like India is not an easy thing? Why?

Answer 1

Yes, maintaining an employment growth rate of about 2% in a country like India is not easy. The main reasons are:

• India has a large and continuously growing labour force.
• Every year, a large number of young people enter the job market.
• Agriculture already has disguised unemployment, so it cannot absorb many more workers.
• The organised sector creates only a limited number of jobs.
• Rapid use of technology and automation can reduce the need for labour in some activities.
• There is often a mismatch between workers’ skills and available jobs.
• Creating enough productive jobs requires continuous growth in industry, services, infrastructure and small enterprises.

Hence, to maintain high employment growth, India must create large numbers of productive jobs through skill development, industrial growth, support for small businesses, rural development, and labour-intensive sectors.