Wednesday, May 16, 2007

The Coming "Unemployment Explosion"

This is a continuation/ appendix to an earlier mail on Future of Work/Employment in India:

According to the TeamLease' India Labour Report 2006 (pdf format, 100 pages):

Coming Unemployment Explosion

  • India's working population in 2020 will be equal to India's total population when reforms started in 1991

  • Projecting current variables forward means 211 million unemployed in 2020; an unemployment rate of 30%

  • Unemployment will largely be a youth problem; nine out of ten unemployed are likely to be in the 15-29 age bracket

    Inefficient Labour Markets

  • Unorganized employment grew by 31% versus Organized employment of 4% in the nineties

  • Labour laws may not be affecting overall growth but are influencing where jobs are created and amplifying the substitution of labour with capital.

    The Report also predicts that by 2020, India will have merely 88mn graduates... (which, in a way would be a jump of the total 'stock' of 26mn in 2004)

    If interested, you can download the report from here...

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