Approximately two million new jobs were required in 2013-14, it was reported Thursday, as the labour force was expected to grow by 3.6 percent based on past average population growth and increase in the labour force participation rate.
According to official sources, the prevailing employment elasticity was approximately 0.6 percent. To absorb the growing labour force and maintain the unemployment level of 2012-13, a seven percent rise in Gross Domestic Product (GDP) was required.
Official sources said prudent policy initiatives were required to generate additional employment and maintain the unemployment rate at the level of 2012-13.
They said the government had devised employment promotion policies to address the issue.
The policies focused on human resource development and creation of more and better job opportunities for men and women based on internal markets, cities and communities,
sources said, adding the initiative may be the provision of demand driven vocational training along with credit for self-employment to lessen unemployment in the country.
They said the policies aimed to absorb a large percentage of the labour force in productive employment along with reduction in the size of the under-employed and unemployed workforce.
The policies focused on promotion of labour intensive sectors in the country, such as agriculture, agro-based export industries, construction and social services and small and medium enterprises (SMEs).
Further objectives of the policy included creation of an efficient, well functioning labour market information system to reduce skill shortages and job mismatch.
The policies highlighted that the minimum wage was to be periodically adjusted and enforced and also aimed to provide microfinance schemes on a large scale to promote small and micro enterprises and self-employment.
Skill development based on public-private partnership (PPP), increase in productivity for economic growth and provision of security to workers were amongst the other features of the policy.