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Economic Survey 2023-24: Unemployment declines to 3.2%, focus shifts to skilling, investment

Notable progress in India's labour market over the past six years, with the unemployment rate falling to 3.2% for 2022-23.

NEW DELHI: Union Finance Minister Nirmala Sitharaman presented the Economic Survey 2023-24 on Monday, outlining key areas of focus for India’s economic trajectory. The survey reveals notable progress in India’s labour market over the past six years, with the unemployment rate falling to 3.2% for 2022-23.

This survey, the second authored by Chief Economic Adviser V Anantha Nageswaran, highlights critical themes such as employment, skill development, and investment strategies poised to drive future economic growth.

 

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India’s workforce is estimated to be nearly 565 million. Of this, agriculture makes up nearly half of the employment in India at 45 per cent, followed by services at 28.9 per cent, construction at 13 per cent, and manufacturing at 11.4 per cent.

This decline reflects an overall healthier job market, underpinned by significant net payroll additions under the Employees’ Provident Fund Organisation (EPFO), which has more than doubled in the last five years. This increase signals robust growth in formal employment.

The rising participation of youth and women in the workforce presents a substantial opportunity to leverage India’s demographic and gender dividend. With artificial intelligence increasingly influencing various economic sectors, the survey stresses the importance of balancing technological advancements with labour needs to ensure collective welfare.

 

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To foster quality employment, the survey identifies agro-processing and the care economy as promising sectors. These areas are expected to generate and sustain job opportunities. The government’s ongoing initiatives, such as the ‘Skill India’ programme, aim to enhance skill development among candidates, further boosting employability.

The survey also highlights several regulatory challenges that hinder employment generation, including restrictive land use policies, building codes, and limitations on women’s employment hours. Addressing these regulatory chokeholds could significantly enhance job creation and improve the female labour force participation rate.


In summary, the Economic Survey 2023-24 outlines a strategic approach to economic expansion through targeted employment and skilling initiatives.

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