Page 15 - CII Artha Magazine

job, other sources] as
The rise in jobs ties in with II. Employment The various policy initiatives by percentage of total workforce opposed to training received III. Conclusion
the decline in unemployed Net addition to employment (million) between FY18-FY22 the government over the years stands at 24 per cent in China,
labour force in the economy 90 86 among skilled such as the Skill India Mission, 52 per cent in USA, 68 per cent from formal channels. While
between FY18-FY22. Breakup of jobs creation (million) Pradhan Mantri Kaushal Vikas in UK, 75 per cent in Germany, a small increase has been With addition to India’s
working-age population
Encouragingly, unemployment 70 61 workforce Yojana (PMKVY), National 80 per cent in Japan and 96 per seen in males receiving (15-64 years), its so-called
cent in South Korea.
Policy for Skill Development
formal training over the
decreased by 4.0 million in 6.0 and Entrepreneurship among five-year period, a decent rise demographic dividend is
the five-year period. 50 While the healthy increase in others have contributed to this Further, the bulk of the rise in was witnessed in females expected to expand by 206
30 25 19.0 jobs over the last five years is jump. skilled workforce has been receiving formal skilling with million in the next 10 years as
Regular/salaried jobs an encouraging sign, an seen in the category of an increase noted from 1.7 per UN Population Agency
accounted for only 6 million 10 equally important issue which However, putting it in the global individuals who have received per cent in 2017-18 to 3.0 data. It is imperative that the
of the net increase in jobs Casual Labour needs to be addressed is if context, the proportion of informal training [from family, per cent in 2021-22. country creates enough jobs
Wage/Salaried
during the five-year period. -10 Jobs Self employed Total the availability of skilled formally skilled workers as a self-learning, learning on the and prepares the work force
workforce has also increased adequately, so that its
Source: Various rounds of PLFS and CII Research at a concomitant pace. To demographic dividend may
attain a particular skill, one not turn into a liability.
has to undergo certain
vocational training. Vocational Percentage of population with vocational training (%) We need an increased focus
training prepares people for a on labour-intensive industries.
The labour force during the persons. Under labour force, The working age population specialized area of work and The challenge for the
five-year period increased by employed population (individuals aged 15 years of makes them employable for a 88.6% 95.2% 87.7% 91.9% manufacturing sector to
82.7 million at CAGR of 4.8 increased by 86.5 million at an more) increased by 71.9 range of occupations in 73.6% 80.5% absorb the labour force is
per cent, while the population estimated CAGR rate of 5.3 million at an estimated CAGR various industries and going to increase further,
outside labour force per cent, over the five-year rate of 2.2 per cent, over the economic sectors. On especially as globally
decreased by 10.8 million. period, while unemployed five-year period. acquiring a particular skill 22.7% 16.1% manufacturing moves towards
through such training, a
automation and artificial
Labour force is defined as the population declined by person can also create 2.3% 3.7% 9.1% 3.0% 3.1% 9.3% 2.0% 3.4% 6.1% intelligence. Focus on sunrise
‘economically active’ 3.8 million in the comparable opportunities for 1.7% sectors such as renewables
population includes both period. self-employment. and networked products is
’employed’ and ‘unemployed’ Formally skilled Unskilled Formally skilled Unskilled Formally skilled Unskilled essential.

SHARP RISE SEEN Non-formally skilled Non-formally skilled Non-formally skilled The quality of the workforce
IN SKILLED is equally important. High
Workforce Categories (in million) WORKFORCE IS A Male Female Total quality school education,
relevant higher education and
FORTUITOUS SIGN skill development aligned to
industry needs, are some of
Sr. No. Workforce 2017-18 2018-19 2019-20 2020-21 2021-22 Change between the prerequisites for India to
categories FY22 & FY18 The PLFS survey provides 2017-18 2021-22 become an economic
information on whether a powerhouse which not only
person aged 15 to 59 years Source: CII estimates using PLFS data creates good quality jobs for
1 Working age 793.8 802.7 835.7 830.2 865.7 71.9 has acquired or is acquiring its youth, but also services the
population 1 any vocational training, both rest of the world.
from formal and informal
2 Labour Force 395.3 404.3 448.3 456.9 478.0 82.7 sources. We have termed this
set of population as “skilled”
and those with no vocational
3 Employed 371.5 380.5 427.0 437.1 458.0 86.5
training as “unskilled”.
4 Unemployed 23.8 23.8 21.2 19.8 20.0 -3.8 Over the five-year period,
[(2)-(3)] there has been a sharp rise
seen in the proportion of the
total workforce (15-59 years)
5 Outside labour 398.5 398.4 387.4 373.3 387.7 -10.8 having received any form of
[(1)-(2)] vocational training (formally
or non-formally). The figure
Source: Various rounds of PLFS and CII Research has risen from 8.1 per cent
1 Population aged 15 years or above
seen in 2017-18 to 19.5 cent
in 2021-22.

14 ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY 15
QUARTERLY JOURNAL OF ECONOMICS
QUARTERLY JOURNAL OF ECONOMICS
MAY 2023 MAY 2023