GST implementation may also lead to new jobs in manufacturing in near future
Employment in core sectors could revive in the coming year. While early signs of revival are being seen as the implementation of goods and services tax (GST) has been completed, next year may see an increase in the number of jobs created in the manufacturing and production sectors.
Sanjay Modi, Managing Director (APAC & Middle East), Monster.com said that based on the Monster Employment Index data of 2017, two core IT and Production & Manufacturing sectors seemed to have moved to a revival mode.
“Both the sector have shown noteworthy improvement in online recruitment activities in the second half of the year. These sectors are noticing a bounce back, putting overall growth of online recruitment on an upward trajectory,” said Modi.
An earlier study by TeamLease Services had said that simplification of tax calculation, availability of input credit, reduction of cost of production, improved cash flows, ease of registration and lower cost to customer ushered in with implementation of GST is expected to improve the manufacturing outlook in India and thereby have a positive impact on jobs.
Needless to say, GST implementation needs to be backed by on ground actualization of the vision Make in India, Smart Cities, Ease of doing Business, Skilling India and a healthy regulatory regime to create the volume of formal jobs needed for a 13 million youth who are joining the workforce every month, it said.
For the jobs sector as a whole, a conducive regulatory environment will lead to the number of formal jobs to increase, said a study by TeamLease.
Sonal Arora, Vice President, TeamLease Services said, “A few key but impactful regulatory reforms can raise the share of formal employment from the current 10 percent to nearly 40 percent and create 10 million jobs.”
These include consolidation of 44 central labour laws into 4 labour codes, employee salary choice and amendments in acts like Industrial Disputes Act 1947, Contract Labour and Regulation Act 1970 as well as adoption of Model Shops and Establishment Act.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.