Wadhwani Insights into Jobs in India
The Wadhwani Public Policy and Research team undertook an in-house study to understand the reasons behind the lag between economic growth and job creation in India in the last few years. It was based on multiple rounds of interaction with several stakeholders; analysis of existing reports of think tanks, industry associations and consulting firms; and desk research. It analysed the job situation in India amidst the reality of rising unemployment when most investments are capital and technology intensive but not leading to creation of additional jobs.
The study inferred that the possible policy interventions are confronted with several challenge in India given the gross job data inadequacy and inaccuracy wherein multiple agencies undertake sub-optimal employment tracking. The study collated sectors with high and low employment elasticity and ‘jobs-to-investment’ ratio in few key sectors. The study also looked at existing estimates to capture the job creation potential under different scenarios and found that the future job trends would be led by domestic consumption, services sector, micro-entrepreneurship and gig economy. Sectors which are certain to add jobs till the year 2022 were also analysed along with drivers that would propel growth in each of these.
The team would attempt to establish the way-forward for jobs data in India through a pilot at federal or state level. Thereafter, a strategy would get worked out for strengthening the team which would eventually enable the emergence of WF as the ‘go-to’ organisation for insights into jobs in India.