As economy slows down, India would need to create 8 mn jobs every year

The real challenge is in raising the labour participation and employment rates

A question often asked is, how many jobs does India need to create every year?  There are many reasons why this question is important. First, conventional economics informs that if an economy desires to grow then it must harness more labour into productive jobs. Second, since India has a large and growing young population, providing them good jobs could help it encash once-in-a-lifetime demographic dividend. Third, if the large and young population is not provided with jobs, they can get restive and beyond a point that could be socially destabilising. Fourth, India has a very low labour participation rate and