Formal job creation is a hidden power for growing economies. The emerging markets are never devoid of opportunity for long when the skills are available on call. The young and dynamic literate population of India can be its biggest asset when used right. The considerable industrialization, non-farm job creation, and ever-widening opportunities for all classes in the formal and informal sectors in India are the strongest driving forces for the economy.
While nurturing the gigantic bank of skills and sustaining formal job creation is challenging in scope, it is also the only reliable long-term solution to plunging growth rate and surging inflation. It feeds the larger aim to root out poverty. Given the sudden onset and rapid proliferation of the global pandemic, job creation in India got impacted along with that in several global political superpowers. However, the trend of layoffs earlier this year is now witnessing a slow but sure about-turn, with the employees and contractors who suffered a setback either getting rehired or finding new jobs.
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The prime reason for the ready indicators of recovery are the land and labor reforms which the government of India took on the onus to introduce. Investors queue up to take advantage of the welcoming practices that support establishing new businesses and expanding existing ones. Watchers of the trends will also comment that formal job creation does not mean that wage scales and salaries will follow a similar promising trend. Rather, recovery on this overhead traditionally maintains a slower pace. This is all the more reason for the formal sector employment in India to be buoyed up by administrative bodies and industry leaders with patience. Short-term markers are less reliable with regard to baseline wage recovery. With the right incentive packages, tax breaks, and bureaucratic support, employment in India can pull per capita wage structures out of their ebb.
Specific areas of the Indian economy that facilitate formal job creation
The other encouraging factor is that the notion of social security is now spreading to the wider realms of the country. The job market is now welcoming hires in tier II and tier III cities and even towns buy in to the merits of non-farm job creation. While the actual formal job creation metrics in the year 2020 may only be 70% of what was seen in the previous year, the indicators for a burgeoning gig economy, short term employment, and returning migrant jobs are promising in the last two quarters of 2020.
Demand generation in the last two months has returned to nearly 90% of the first quarter of the year 2020, which means formal jobs are in a fair way to return to normal in major cities and towns in the coming months. Examples of cities welcoming workers back are Hyderabad, Bangalore, Mumbai, and Delhi. The additional fillip is an openness to the gig economy, which allows workers to sell their services across borders and fulfill assignments without being present in an office.
The most encouraging numbers of formal employment creation and reinstatement are observed in production, manufacturing, retail and supply chain operations of essential goods, and support, logistics, and delivery segments. Facility management is another sector that continues to recover and engender new formal job creation – particularly in residential and commercial real estate domains, hospitals and health and safety domains, and operations and security services. These facts combined with a proactive leadership at the center and state are sure to allow India’s economy to wrap up the calendar year on a hopeful note.
- The only social security India can afford is formal job creation | Livemint | Nov 2020
- Labour reform will create jobs, but wage premium will get hit | Livemint | Prashant K.Nanda | Sept 2020
- Approval to labour reform bills by Parliament to help create job opportunities | CII, ET Bureau | Press Trust India | Sept 2020
- Job creation level in 2020 to be 70% of that in 2019, tier 2-3 cities to lead recovery | Job report | India Today | India Today Web Desk | Oct 2020
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