Economic Survey 2019 unveiled Thursday lays out an ambitious agenda for pick-up in investments to help job creation.
Economic Survey 2019 unveiled Thursday lays out an ambitious agenda for pick-up in investments to help job creation. The cover design of ‘inter-linked gears’ on the survey booklet captures the idea of investment, savings, exports, growth and jobs being complementary. These all form ‘virtuous cycle’ with investment as the key driver of the economy, Chief Economic Advisor (CEA) Krishnamurthy Subramanian said. The survey considers increasing the retirement age since the life expectancy of the people is rising. Since the current minimum wage system is complex, it’s required to fix minimum wages according to unskilled, semi-skilled, skilled and highly skilled workers, it added. The increase in retirement age would also help to increase female labour force participation in older age groups, said the survey. It will also help plan in advance for pensions and other retirement provisions, it added.
The labour force participation rate (LFPR) if assumed to remain at about 60 per cent in the next 20 years, about 55-60 lakh jobs will have to be created each year over the coming decade, it added. It could only be achieved by re-orienting the policy stance to boost the growth of MSMEs. The assessment by the National Sample Survey Office conducted between July 2017-June 2018, showed the unemployment rate stood at 6.1 percent, the highest since 1972-73.
Describing the design of the survey booklet, CEA Subramanian said that the Blue Sky Thinking denoted new ideas for policymaking and the behavioral ‘nudges’ to design and deliver optimal outcomes. It also denoted the policies to unshackle MSMEs to grow, create jobs and enhance productivity.
Apart from the words on NBFC sector and others, interest would be to see any ideas regarding the issue of demographic dividend, considering the current employment scenario, SBI chief economist Soumya Kanti Ghosh Das, told CNBC TV18. The creation of jobs should be among the most crucial focus areas for the government, he added. Some focus could also be on the bankings ector and road ahead for resolution of bad loans, he added.