New Delhi: In the five year period from 2007 to 2012 about 58 million jobs are expected to be generated with the non-agriculture sector boosting employment during that period, the Economic Survey tabled in Parliament by finance minister Pranab Mukherjee on Thursday said.
Employment opportunities in the Eleventh Five-Year Plan period (2007-12) would surpass the projection of about 45 million, in turn helping to bring down unemployment in the country to below 5%, according to the Pre-Budget Economic Survey.
“The projected increase in total labour force during the Eleventh Five Year Plan is estimated at 45 million. It is also projected that 58 million employment opportunities would be created in the Eleventh Five Year Plan,” the survey said.
The report pointed out that this would be greater than the anticipated increase in labour force, leading to a “reduction in the unemployment rate to below five per cent” by 2012.
Rather than the agriculture sector, others like food processing, gems and jewellery, handloom, tourism and construction are expected to contribute in increasing employment in the 2007-12 period.
“It is expected that agriculture sector may not contribute towards any increase in employment during the Eleventh Five Year Plan,” the survey noted.
The report said the Five-Year Plan seeks to reduce underemployment and moving surplus labour in the agriculture sector to more gainful employment in the non-agricultural sector with higher wages.
According to the Survey, the Plan has identified the labour-intensive manufacturing and services sectors with good employment potential.
Such sectors include food processing, leather products, footwear, textiles, wood and bamboo products, gems and jewellery, handicrafts, handlooms, tourism and construction.
Meanwhile, employment growth in the organized sector - both public and private - has dropped during the 1994-2006 period to 0.12%. This was mainly due to a negative employment growth rate in the public sector at 0.54%.
Growth in jobs in the organized sector stood at 1.20% in the 1983-94 period, with the public sector accounting for 1.53% of the total.