Zee News
 
Chennai, Aug 15: The current employment elasticity in India is 0.15, which means that even if 100 million new jobs are created by 2020, an additional 170 odd million will be unemployed, according to "India Labour Report 2006".

Some of the key findings of the report by Teamlease Services Pvt Ltd the quality of labour force in 2020 is not encouraging-only 88 million people will be graduates. It also says that out of India's 402 million workforce, only about seven per cent ended up working in the organised sector.

"The unorganised sector is completely outside the purview of most labour laws and this includes social security. Liberalisation will also involve extending protection of labour in the unorganised sector," it points out.

The report further states that the need for creation of new jobs every year may be higher, at about 15 million per year against the current projection of 10 million per year.

The report has also ranked states on the basis of labour ecosystem: Labour demand, labour supply and labour laws.

The top three states in each category are: Gujarat, Goa and Himachal Pradesh for labour demand; Goa, Karnataka and Tamil Nadu for labour supply and Maharashtra, Karnataka and Punjab for its labour laws. Delhi, Gujarat and Karnataka ranked the best in the overall labour ecosystem.

"The silent majority of unemployed and unorganised labour (93 per cent of workforce) need a labour regime that chooses new jobs over existing ones, does not encourage the substitution of labour by capital and eliminates the disincentives of job creation in the organised sector," Teamlease Services Chairman Manish Sabharwal said.