NEW DELHI: The Economic Survey, which was tabled in Parliament by Finance Minister Nirmala Sitharaman on Thursday, suggested that the country needs to create around 60 lakh jobs annually over the next 10 years.
“Deregulating labour law restrictions can create significantly more jobs, as seen by the recent changes in Rajasthan when compared to the rest of the states,” the survey said.
The survey predicts that the working population would grow by around 97 lakh annually in the next decade and 42 lakh per year in the 2030s. “If we assume that the labour force participation rate (LFPR) would remain at about 60 per cent in the next two decades, about 55-60 lakh jobs will have to be created annually over the next decade,” the document stated and also noted that no major reforms in the labour sector had been initiated by states between 2007 and 2014.
“The states which are rigid in respect of their labour laws are suffering in all dimensions and are unable to create enough employment and cannot attract adequate capital,” the survey stated.
According to the survey report, a comparison between the indicators for labour, capital and productivity of manufacturing firms makes it clear that flexible labour laws create a more conducive environment for the growth of the industry and employment generation.
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Labour codes
Labour ministry wants to create 4 codes — wages, industrial relations, social security and welfare and occupational safety, health and working conditions — by simplifying the relevant provisions of the laws