Adoption of new technologies, reskilling key for job growth

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Mains Paper 3: Economy | Development and employment

From UPSC perspective, the following things are important:

Prelims level: Not much

 Mains level: Declining jobs in India- reasons and way forward



  1. According to of Economic Survey for 2016-17, Employment in India poses a great challenge in terms of its structure, with it being dominated by informal, unorganised and seasonal workers.
  2. It also highlighted the deceleration in hiring being faced by the IT-BPM (business process management) sector.
  3. The Survey said that misconstruing mobility of skilled people as an immigration issue is a “deterrent to the growth of this global business” resulting in many barriers to free movement of skill and data.

IT sector Jobs

  1. Job cuts in IT sector will be between 1.75 lakh and 2 lakh annually for next three years.


  • Due to under-preparedness in adapting to newer technologies
  1. Nearly half of the workforce in the IT services firms will be “irrelevant” over the next 3-4 years and the bigger challenge will be to retrain 50-60 per cent of the workforce with a significant shift in technologies.
  2. Skills profile is set to undergo a rapid change as demand for skills around digital technologies grows exponentially
  3. Growth in digital tech like cloud-based services is happening at a much faster pace

Reasons behind declining Jobs in India

  1. Automation threatens 69 per cent of the jobs in India, while it threatens 77 per cent in China.
  2. Labour markets are impacted by rigid labour laws
  3. The emergence of contract labour.

Government initiatives

  1. Higher budgetary allocation for anti-poverty programmes
  2. Employment generation schemes.
  3. Public employment generation programmes have continued to be a major tool for creating additional jobs and promoting inclusiveness.

Skill development

  1. Survey said that the current measures of outcome in skill training are only uni-dimensional and need to made multi-dimensional.
  2. Skilled labour force is essential to meet diversified demands of a growing economy, to tap the benefit of demographic dividend
  3. Quoting the India Skill Report 2016, the present demographic advantage of India is predicted to last only till 2040.
  4. A sector wise study, commissioned by National Skill Development Corporation, has estimated the incremental human resource requirement of 103.4 million across 24 high priority sectors by 2022.