The Economic Survey has claimed that India is not creating enough productive jobs.
The country had the dubious distinction of having some of the most comprehensive labour laws in the world, even while having one of the largest fractions of the working population unprotected.
The Survey said not only do informal workers had lower productivity and earn less, but they were also more vulnerable to violations of basic workers’ rights such as reasonable working conditions and safety at work. The survey felt “it may be the stringent protection that is afforded by the existing regulations that is responsible for both the paucity of good jobs as well as inadequate protection that most workers have.”
In India, reforms were typically implemented only after some sort of political consensus was reached on them. “It is, therefore, imperative that consensus building on labour market reforms should start soon.”
The country needed many more firms in the formal sector, especially firms that continue growing and creating productive jobs. It might take time to build political consensus for fundamental reforms. “In the meantime, States could be allowed more flexibility to experiment without coming into conflict with Central statues. As best practices evolve, success in job growth would resolve theoretical debates more easily than thousand papers. “If indeed rigid labour laws are determined to be the key constraining factor in the creation of productive jobs, win-win reforms are easily available,” it said.
India should create good quality jobs in manufacturing and services sectors. The future holds promise for India if it seized the demographic dividend, with nearly half of the additions to the labour force between 2011 and 2030 expected in the 30-49 age group.
“Because good jobs are both the pathway to growth as well as the best form of inclusion, India has to think of ways of enabling their creation,” it said.
“India is creating jobs in industry but mainly in low productivity construction and not enough formal jobs in manufacturing, which typically are higher productivity. The high productivity service sector is also not creating enough job,” it said.
Keywords: Overall employment scenario, upward trend in employment, Economic Survey 2012-13, unemployment rate, current daily status, CDS method
How can you create manufacturing jobs by wishes in market economy? if you talk of increasing the production of commodities which you have knowhow to produce, the no of people with purchasing power has to be increased, their income at moment is insufficient; if you want to target the society which has become novo riche and are traditionally rich you do not have the know why and Knowhow to set up manufacturing jobs; If you buy know-why or Know why and Knowhow and make, your product is costlier due to lower productivity and quality. So nobody will invest .How do you create jobs? You have to develop creative skills in merited people and fund them to improve things and develop new things up-to market at best PQD. Otherwise creating mfg jobs in a big way is not achievable .Small increments -YES then again Govt can take up MEGA projects like Garland canal link river etc which can give lot of work for Mfg and alsofor technicians .Big public projects brought up much manufacturing employment
It appears government has not learnt any lesson from the 11th plan
fetish for skill development to attain a double digit manufacturing
sector growth rate. Demographic dividend is attainable due to poor
employability of the bulging working age population. The deficits in
educational attainment and health outcomes further compound the task.
Besides, labour law flexibilities do not ensure violation of workers’
rights while good enforcement might. Then assuming China pattern to
hold good in India denotes lack of critical sense. Agriculture
dependent population or labour cannot be transplanted into either
industries or services sector. Economic Survey in that sense is
grossly naive. The big worry however is the loss of girl child as it
happens in China with one child norm. Does Economic Survey 2012-13
argue for a dictatorial regime and totalitarian rule violating all
semblance to human rights in India?
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