New Delhi, Dec 12 (NationPress) An expansion of the skilled workforce and enhanced productivity within small enterprises could serve as essential catalysts for job creation across the nation, according to findings from the National Council of Applied Economic Research (NCAER).

Authored by Professor Farzana Afridi and her team, the report underscores the necessity of addressing obstacles that hinder improvements in both the quality and quantity of workforce participation and overall labour productivity.

The surge in job opportunities is largely attributed to the increase in self-employment, despite the sluggish transition towards a more skilled labour force.

Bolstering employment prospects in labour-intensive manufacturing and services sectors could help maintain GDP growth at approximately 8 percent, aligning with the vision of Viksit Bharat, as outlined in the report.

“India is on a trajectory to become the world’s third largest economy. Although its per capita GDP currently ranks 128th, this signifies crucial opportunities to focus on employment and inclusive growth,” stated Manish Sabharwal, Vice Chairman of NCAER, during the report's launch.

Afridi remarked that the prevalence of self-employment in India represents an “economic necessity rather than entrepreneurial dynamism.”

“Similar to small-scale farmers, most small enterprises operate at a subsistence level. India must acknowledge that its employment future hinges on the productivity of its smallest enterprises,” Afridi emphasized.

The primary challenge lies in the fact that unincorporated household enterprises function with low levels of capital, productivity, and technology adaptation.

Moreover, the report indicated that India's workforce could significantly benefit from upskilling, especially with the emergence of new technologies and AI.

Medium-skilled positions are leading the way in employment growth, particularly in the services sector, while manufacturing remains predominantly low-skill.

“Enhancing the share of the skilled workforce by 12 percentage points through investments in formal skilling could result in over a 13 percent boost in employment within labour-intensive sectors by 2030,” the report noted.

Simulations indicated that increasing the formally skilled workforce under moderate growth scenarios could yield substantial job creation in labour-intensive industries.

“A 9 percentage point increase in the skilled workforce could lead to the generation of 9.3 million jobs by 2030,” it added.

The report advocated for targeted interventions to unlock employment potential in particular sectors.

In manufacturing, redirecting production-linked incentives toward labour-intensive industries like textiles, garments, footwear, and food processing can produce greater job multipliers.

In the services sector, policy support for tourism, education, and healthcare can foster widespread, inclusive employment.