To maintain its employment rate, India has to create 8.1 million jobs a year said a World Bank report. The report stated that India’s economy has recovered from demonetization and Goods & Services Tax.
According to the report, India’s growth is expected to accelerate from 6.7 in 2017 to 7.3 percent in 2018 and to subsequently stabilize supported by a sustained recovery in private investment and private consumption.
It points out that India should strive to accelerate investments and exports to take advantage of the recovery in global growth. “The working age of the country is increased by 1.3 million people and for that, it should create 8.1 million jobs to maintain the employment rate, which has been declining based on employment data analyzed from 2005 to 2015, largely due to women leaving the job market,” said the report.
It also highlights the scenario of South Asia and shared that the region has regained its lead as the fastest growing region in the world, supported by a recovery in India. With the right mix of policies and reforms, the growth in this region is expected to accelerate to 6.9 percent in 2018 and 7.1 percent next year.
It points out that growth is essential, but the South Asia region can’t rely only on high growth for the employment rate. To make the growth more labor intensive policies and actions are required to create jobs which can encourage labor force participation by women.
“More than 1.8 million young people will reach working age every month in South Asia through 2025 and the good news is that economic growth is creating jobs in the region,” said Martin Rama, World Bank South Asia Region Chief Economist.
“But providing opportunities to these young entrants while attracting more women into the labor market, will require generating even more jobs for every point of economic growth,” she added.