New Delhi: The economic survey suggested the Government to tap into the manufacturing sector for creating more jobs.
There is high rate of unemployment in the country despite the economy expanding rapidly.
The survey welcomed the "right-sizing" of public sector units, whose main aim is to deliver essential services and not providing jobs. This should continue, it said, adding steps should be taken to increase job growth in private sector.
According to the survey, while employment has grown faster than before, the rate of unemployment also went up from 2.8 to 3.1 per cent during 1999-2000 to 2004-2005 partially attributing the rise to a slowdown in farm sector.
The employment rate has gone up from 1.6 per cent in 1993-2000 to 2.5 per cent during 1999-2005. The "worrisome marginal decline" of 0.38 per cent in organised sector employment between 1994 and 2004 has raised disturbing issues about optimal regulation and incentives.
However, private sector offered more jobs and rose from 0.44 per cent in 1983-94 to 0.61 per cent in 1994-2004. But public sector jobs witnessed a decline of 0.80 per cent.
"There is a need of faster employment growth for not only observing the addition to labour force, particularly with the ongoing demographic changes, but reducing unemployment."
The survey pointed out that share of farm sector in employment has declined to 54.19 per cent in 2004-05 from 58.54 per cent in 1999-2000 and said the sector offered limited potential for absorbing substantial additional labour force.
"While construction and services, transport, storage and communication contributed in maintaining employment growth in the economy, employment growth in manufacturing fell short of its potential," the survey noted.
With agency inputs
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