Employment Growth:
- According to NITI Aayog member Arvind Virmani, jobs in India have been increasing steadily.
- PLFS (Periodic Labour Force Survey) data indicates that the worker-population ratio (WPR) has increased from 34.7% in 2017-18 to 43.7% in 2023-24, outpacing population growth
Relevance : GS 3(Economy)
- Stagnation in Real Wages:
- While jobs are increasing, real wages for regular salaried jobs have not kept pace with inflation over the past seven years.
- This stagnation in wages is more prominent in formal employment.
- Skill Deficiency as the Main Cause:
- Lack of skilled workers is cited as the primary reason for stagnant real wages.
- The gap in skilled labor lowers productivity, affecting wage growth.
- Need for Skilling Initiatives:
- Emphasis on improving the quality of education, training, and skill development to address the wage stagnation issue.
- Government efforts are in place, but states and districts also need to enhance skilling programs.
Implications
- Positive Employment Trend: The rising worker-population ratio signals an expansion in job opportunities, countering claims of job stagnation.
- Challenges in Wage Growth: The failure of wages to keep up with inflation can lead to reduced purchasing power, affecting overall economic growth and consumption.
- Urgency for Skill Development: Addressing skill gaps is crucial to boosting productivity and improving real wages, ensuring sustainable wage growth alongside job creation.
- Decentralized Approach Needed: Skilling initiatives must go beyond central schemes and be implemented effectively at the district level, where job creation is more localized.
