Latest news with #FarzanaAfridi
Time of India
19 hours ago
- Business
- Time of India
Jobs push needs skilling: Economic policy think-tank NCAER urges investment in training, says 13% job gain possible by 2030
AI image NEW DELHI: India can boost employment in labour-intensive sectors by over 13% by 2030 through targeted investment in formal skilling, according to a paper by the National Council of Applied Economic Research (NCAER). The study argues for a multi-pronged policy push to improve workforce quality and bridge the country's employment gap. The paper, titled 'The Landscape of Employment in India: Pathways to Jobs', highlights the critical role of skilled labour in accelerating job creation, particularly in manufacturing and services. 'On the supply side, we show that increasing the share of skilled workforce by 12 percentage points through investment in formal skilling could lead to more than a 13 per cent increase in employment in labour intensive sectors by 2030,' the paper said, quoted PTI. Labour-intensive industries currently account for a significant share of employment—44.1% of manufacturing jobs and 54.2% of services sector employment, the paper noted. 'Our demand-side simulations indicate that we can significantly bridge the employment gap by increasing the size of the manufacturing and services sectors, particularly through a focus on labour-intensive industries therein,' it added. The paper's author, Farzana Afridi, emphasised the need for a 'multi-pronged approach' to enhance production capacity and stimulate job creation, including higher government expenditure, tax cuts, and domestic demand stimulation. While analysing government initiatives, the paper cited a mismatch in the Production-Linked Incentive (PLI) scheme, pointing out that although it focuses on high-skilled, high-value sectors, the most jobs have been created in food processing and pharmaceuticals. 'This reflects a mismatch between budgetary allocation under PLI and potential for employment creation,' the paper said. To maximise gains, the report recommends adopting global best practices, implementing national quality standards, and revamping education systems to improve human capital. It also suggests embedding digital literacy, ICT skills, and soft skills into vocational training to enhance employability. The study referenced the Future of Jobs Report 2025, which estimates that 63% of India's workforce will need reskilling or upskilling by 2030 to stay competitive. 'Improving training quality, along with increasing the share of formally trained workers, can lead to higher employment gains,' the paper concluded. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
19 hours ago
- Business
- Time of India
NCAER pitches for investment in skilling to increase jobs
New Delhi: A paper by economic think tank NCAER has made a case for investment in skilling of workforce to increase employment in the labour intensive sectors by 2030. The paper titled 'The Landscape of Employment in India: Pathways to Jobs' said inter-sectoral linkages can have a multiplicative effect on employment in the aggregate economy, increasing employment by up to 200 per cent relative to existing scenario. "On the supply side, we show that increasing the share of skilled workforce by 12 percentage points through investment in formal skilling could lead to more than a 13 per cent increase in employment in labour intensive sectors by 2030," it said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like a adad Undo On an average, the paper said labour-intensive manufacturing accounts for 44.1 per cent of total manufacturing employment, while labour-intensive services account for 54.2 per cent of total services employment. "Our demand-side simulations indicate that we can significantly bridge the employment gap by increasing the size of the manufacturing and services sectors, particularly through a focus on labour intensive industries therein," the paper said. Live Events Outlining some of the policy prescriptions, the paper's author Farzana Afridi said there is need for a multi-pronged approach to increase production capacity in labour-intensive manufacturing and services sectors, including stimulating domestic demand through higher government expenditure and lowering of taxes. The paper also laid stress on adoption of international best practices and implementation of national quality benchmarks for training and reskilling or upskilling existing workers. Referring to the Production-Linked Incentive (PLI) scheme, the paper pointed out that it is primarily focused on expanding production of high value products with backward linkages which require high-skilled labour. "But the highest number of jobs under the scheme has been created in the food processing and pharmaceuticals industry. This reflects a mismatch between budgetary allocation under PLI and potential for employment creation," the paper said adding productivity and quality of workforce have to be increased significantly to improve labour quality. It cited the Future of Jobs Report 2025 which highlights that 63 per cent of India's workforce will need reskilling or upskilling by 2030 to remain competitive. Among others, the paper suggested incorporating soft skills, digital literacy and Information and Communication Technology ( ICT ) skills into training programmes to enhance employability, particularly within services sub-sectors. "Improving training quality, along with increasing the share of formally trained workers, can lead to higher employment gains," it added. Since labour-intensive manufacturing and services sectors account for over half of total employment in India, the paper advocated significant policy focus on expanding labour-intensive manufacturing and services, along with a systemic overhaul of the education system to enhance the human capital of the labour force.
Time of India
a day ago
- Business
- Time of India
India can create 35 crore jobs by 2030, only if it fixes this problem
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel India has the potential to employ up to 35 crore workers in manufacturing and services sectors by 2030, but this will require a major push in skilling initiatives and investment, according to a new study by the National Council of Applied Economic Research (NCAER).The study, titled "Pathways to Jobs", led by economist Farzana Afridi, highlights that while the country's labour force has grown by 9 crore since 2017-18, only 6 crore new jobs have been created during the same period. A large share of future employment—nearly 28 crore jobs—is projected to come from the services report underscores that labour-intensive investments in both manufacturing and services could double overall employment, thanks to inter-sectoral linkages. However, it also notes that employment growth is being constrained by a stagnant manufacturing sector, declining labour intensity, and a shortage of skilled workers."The share of the workforce in agriculture has declined, but manufacturing has not picked up the slack," the report said, adding that labour intensity of production is falling, complicating efforts to absorb the expanding there has been some progress—particularly in the rise of high-skill employment in the services sector—the skills gap remains wide. In 2018, 92% of workers lacked training; by 2024, that number had dropped to 65%, but still, only 4% of workers had formal tackle this challenge, the economists suggest expanding vocational education and allowing students to choose between academic and skills-based tracks. They also recommend macro-level policy changes including higher public spending, tax cuts, investment incentives, and eased labour regulations to stimulate job inputs from ToI
Time of India
a day ago
- Business
- Time of India
Need investment, skilling drive to boost jobs: Study
NEW DELHI: While estimating the possibility of employing up to 35 crore workers in manufacturing and services by 2030, a new study has recommended a massive skilling drive and a focus on investments to ensure that there is gainful employment in the economy. In a paper, "Pathways to Jobs," presented by a team of economists from NCAER led by economist Farzana Afridi, it was estimated that since 2017-18, the country's workforce increased by around nine crore, but around six crore jobs were added. A bulk of the projected jobs - around 28 crore - are expected to come in the services sector. It, however, argued that higher investment in labour-intensive manufacturing and services can lead to a doubling of employment in the economy as there would be inter-sectoral linkages. It noted that the proportion of the labour force engaged in agriculture has declined, while the manufacturing sector's contribution has remained stagnant. What has added to the complication for policymakers is the trend of declining labour intensity of production. In addition, there is an insufficient supply of skilled workers, an issue which the economists said needed to be addressed urgently. While there were changes since 2017-18 with faster growth in high-skill employment, there is a greater concentration of these workers in the services space. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo "There was a decline in the share of untrained workers over time. In 2018, 92% of workers had no training, which fell to 65% by 2024. However, the majority of workers remain untrained. As of 2024, only 4% of workers received formal training," the paper said. The economists made a case for students to be offered a choice to go for academic or vocational education, with training expected to result in additional job creation. At the macro level, the policy recommendations included higher expenditure, along with lower taxes, incentives to spur investment, and easier labour regulations. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
