A recent study by the Crisil, a research firm, says that India requires about 55 million additional jobs by 2015 to maintain its current ratio of employed to total population at 39 per cent.
In a report 'Employment in India: Uneven and Weak', Crisil said the country has to nearly double the job creation rate, witnessed during 2005-10, to achieve this number. Net addition of jobs during 2005-10 was 27.7 million as compared to 27.2 million jobs created in 2000-05.
The study -- based on National Sample Survey Organisation (NSSO) data on employment -- also said that generating 55 million jobs would cause a great challenge without apt policy support. It also said that employment potential of fast growing manufacturing and services sector could not be fully exploited in deficit of enabling policy environment.
The report said that there was a decline in number of self employed people by 25.5 million in 2005-10 period as compared to an increase of 65.5 million in the preceding five years. Similarly, around 65 per cent of the total jobs were created in rural areas during this period. Referring to job creation patterns, it said that high economic growth alone would not be able to create jobs as it required appropriate policy measures in this regard.
The agency said that policy gridlock in labour reforms remained the primary cause of insufficient labour demand in manufacturing. In financial intermediation and business services, labour supply had not kept pace with growing demand due to shortage of highly educated skilled labour.