Employment generation - Factors influencing
Population growth rate:
The labour force comprises those in the age group of 15-64 (International Labour Organization definition) who are looking for work.
The current population increase will impact the labour force 15 years later when those born this year will potentially join the labour force.
Even after obtaining a degree, people may not join the labour force as they may prepare for various exams.
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The children of the lower income class can’t afford to remain unemployed for long.
Middle-class children also have to start working as they face increasing social pressures.
Very few of the young become entrepreneurs. This is because few possess the capital and skills required for this.
Birth rate:
It is the birth rate and not the rate of population increase that is relevant.
Population increase equals births minus deaths.
Life expectancy in India is above 70 years. Children also have higher mortality.
So, we can subtract from the number of births in a given year the deaths among the under-five years.
Assume a negligible number will die at ages 5-50. So, for the number of people entering the labour force, the death rate is not really crucial.
Applying the birth rate for a given year to the population gives the number of births in that year.
Subtract from that the deaths among children below five years of age. That gives the increase in the potential number of young who can join the labour force 15 years later (at age 15).
Social reasons:
Fewer women are likely to join the labour force for social reasons.
Some of the young will go abroad for work and/or studies but their number is small compared to the total.
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