NEW YORK – India’s demographics are in a sweet spot and the country is projected to add at least 179 million people to its working-age population by 2045 can be a significant tailwind for economic growth, particularly as demographics in several parts of the world turn unfavourable, a new report issued on Monday stated.
It noted that India’s working-age population is 961 million and the unemployment rate is at a five-year low.
According to global investment firm Jefferies India’s working age population (age 25-64) is rising as a proportion of the total population which will be a positive for savings and investments as well.
A rise in the Labour Force Participation Rates of females has started in India which will be among a key driving force for expansion of the labour force, alongside demographics.
Jefferies said in its latest note that labour force addition is expected to slow to 6 million by 2030 but the gap should be filled by the shift from agriculture jobs.
According to August data released by the Ministry of Statistics, the LFPR in India’s urban areas among persons aged 15 years and above has increased from 48.8 per cent during April-June 2023 to 50.1 per cent in April-June this year, reflecting an increase in employment in the country.
As per the data, the LPFR for females of age 15 years and above in urban areas also increased from 23.2 per cent during April-June last year to 25.2 per cent during April–June this year.
The Worker Population Ratio another employment indicator, also went up in urban areas among persons aged 15 years and above from 45.5 per cent during April-June, 2023 to 46.8 per cent in April-June, 2024.
As per the RBI data, the total increase in employment during the last 10 years stood at about 17 crore.
It showed that employment in the country increased to 64.33 crore in 2023-24, compared to 47.15 crore in 2014-15, the study concluded.
