India’s Labour Market Sees Improvement, Unemployment Rate Down To 3.2%: Economic Survey

The Economic Survey 2023-2024, tabled in Parliament today, has revealed a significant improvement in India’s labour market indicators over the past six years. The unemployment rate has declined to 3.2% in 2022-23, with the workforce estimated to be around 56.5 crore.

The survey highlights that the non-farm sector needs to generate approximately 78.51 lakh jobs annually to cater to the growing workforce. While the services sector remains a major job creator, the construction sector is gaining prominence, driven by the government’s infrastructure push.

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However, the survey notes that construction jobs are largely informal and low-paid, emphasizing the need for alternative avenues for workers leaving agriculture. India’s working-age population is expect to continue growing until 2044, with around 51.25% of the youth deemed employable.

The government’s flagship skill development programs have seen a significant rise in participation, underscoring the focus on ‘Skill India’. The survey identifies key policy areas for the short to medium term, including job and skill creation, agriculture sector development, MSME support, green transition management, and addressing inequality and health issues among the young population.

The improvement in labour market indicators and the government’s thrust on skill development and job creation present a positive outlook for India’s economy and its growing workforce.