Employment Requirements

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Labour Force Growth and Employment Requirements during Tenth Plan

» Job opportunities will need to be created for 53 million persons during 1997-2002 as a consequence of labour force increase, for 58 million during 2002-07 and thereafter for 55 million during 2007-12.
» Out of the projected increase of employment of the order of 50 million during the Ninth Plan, 24.2 million employment opportunities - 48.2% would be created in agriculture alone.

Employment Requirements during the llth Plan (2007-12)

» On account of the increasing participation of females, the total increase in labour force will be around 65 million during the 11th Plan. To this may be added the present backlog of about 35 million. Thus, the total job requirements of the 11th Plan work out be 100 million.
» The planners aims to provide 65 million additional employment opportunities.
» According to the Approach paper of the 11th
  * Average daily status unemployment rate, which had increased from 6.1% in 1993-94 to 7.3% in 1999-00 increased further to 8.3% in 2004-05.
  * Among agricultural labour households, which represent the poorest groups, there was a sharp increase in unemployment from 9.3% in 1993-94 to a high level of 15.3% in 2004-05.
  * Non-agricultural employment expanded robustly at an annual rate of 4.7% during 1999-2005.
  * Employment in the organized sector actually declined by 0.38% per annum during 1994-2000.

Unemployment Rates between 1993-94 and 2004-05

» The results of the 61st Round of NSSO Survey Employment and Unemployment are based on a sample size which is neither large nor small by standards of previous NSSO rounds.
» The unemployment rate based on current daily status in 2004—05 for males was 8.0% (up from 7.2% in 1993-94) in rural areas and at 7.5% percent (up from 7.3% in 1993-94) in urban areas.
» The corresponding figure for females was 8.7% (up from 7.0% in 1993-94) in rural areas and 11.6% (up from 9.4% in 1993-94) in urban areas.

Employment Opportunities

» Instead of achieving an employment elasticity of 0.38 as projected in the Ninth Plan, the actual employment elasticity achieved during 1993-94 to 1999-2000 was 0.15.
» The employment projections reveal that with 6.5% GDP growth, employment will increase from a level of 397 million in 1999-2000 to 468 million in 2012 - an increase of 71 million in a period of 12 years, giving an annual average growth of 5.9 million.

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