Mahindra Group chairman Anand Mahindra on Friday said there is an urgent need to create jobs on a mass scale by boosting the manufacturing sector.
Mahindra said the current situation is full of opportunities for India, but there are gaps to be filled in to take full advantage of the situation.
“The Indian unemployment rate is hovering around 7-8%, according to CMIE (Centre for Monitoring Indian Economy). This is because job growth has not kept pace with GDP growth,” said Mahindra, addressing shareholders at the company’s 76th annual general meeting.
Also Read: What unemployment? Govt says jobs on rise
As per reports, Mahindra informed that just 40 per cent of the labour force that is capable of working is looking for work. “Among the biggest sufferers are youth and women,” Mahindra said.
“With one of the largest youthful populations in the world, it’s easy to imagine the potential for social unrest if jobs don’t grow along with the youthful population,” he said.
Mahindra said the government is planning to hire 1 million people in government jobs by 2023. “With a workforce as vast as 900 million, a lot more has to be done,” said Mahindra.
As per reports, Mahindra said in the private sector, job creation is restricted to the lower end of the “gig” economy which involves hiring drivers for taxis and food delivery agents.
Also Read: 13 million jobs lost in June, unemployment rose sharply: CMIE
Among the suggestions made, Mahindra encouraged the Micro, Small and Medium Enterprises (MSMEs) to harness the localization of manufacturing trends.
He cited an example from the US where small low investment businesses are able to generate nearly 67 per cent of new jobs. “India should do the same,” said Mahindra.
Mahindra also said that China is losing its edge in the global supply chain network.
As per the Centre for Monitoring Indian Economy (CMIE), unemployment rate has shrunk to 6.8 per cent in July, as compared to 7.8 per cent in June. The rate is the lowest since January, when it was 6.5 per cent.
Among states, Haryana has the highest unemployment rate of 26.9 per cent, as per CMIE.
There is also a fall in the rural unemployment rate, which according to experts, is due to pick up in agricultural activities and a steady monsoon.