8) Scarcity of Jobs
Less than a fifth of Indians have a salaried Job. To make things worse the share of salaried employees in the total workforce has rises only by a meager 4% since the 2000s.
Agriculture still employs nearly half the workforce .India faces a jobs deficit, with job growth primarily in sectors such as construction that offer irregular employment.
Between 1991 and 2007 but has since declined to about half that level. Between 2005 and 2012, the economy added roughly 3 million jobs a year, far too few for an economy with close to 13 million people entering the working age population every year. In a young, more educated, and increasingly aspirational society, this jobs deficit has the potential to turn the much-awaited demographic dividend into a demographic curse.
9) The growth potential of Indian firms
The report found About two thirds of manufacturing jobs are in firms that have less than 6 workers. It also found that a high percentage of these forms have just 1 employees as compared that of 45 workers in The United States. It also found that the average number of employees of a 40 year old firms is the same as that of a 5 year old firm. In the US employment grows by over 8 time while it doubles in Mexico over the same period.
Addressing the misallocation of labor and capital between Indian firms to U.S. efficiency
levels could raise India’s productivity by 40–60 percent.