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Indian Economic Policy

Notes Table 3 : Sector wise share of employment by current daily status

1993-94 1999-00 2004-05
(1) Agriculture 61.0 56.6 52.1
(a) Mining & Quarrying 0.8 0.7 0.6
(b) Manufacturing 11.1 12.1 12.9
(c) Electricity, water etc. 0.4 0.3 0.4
(d) Construction 3.6 4.5 5.6
(2) Industry (a+b+c+d) 15.9 17.6 19.5
(e) Trade, hotel & Restaurant 8.3 11.2 12.6
(f) Transport, storage & Comm. 3.2 4.1 4.6
(g) Finance, insurance, real estate & business services 1.1 1.4 2.0
(h) Community, social & personal services 10.5 9.1 9.2
(3) Services (e+f+g+h) 23.1 25.8 28.4
Total 100.0 100.0 100.0

Source : Compiled from Planning Commission (2007), Eleventh Five Year Plan”, Vol. 1., p.71

Share of Employment in different sectors reveals the share agricultural employment declined from
61.0% in 1993-94 to 52.1% in 2004. The share of industry improved from 15.9% in 1993-94 to 19.5% in
2004-05. Services indicated the sharpest increase from 23.1% in 1993-94 to 28.4% in 2004-05.
Employment Projections for the Eleventh and Twelfth Plans
The Approach Paper of the Eleventh Plan had projected an addition to labour force of 52 million in
the Plan period. However, the projections of labour force growth have been revised in view of the
latest population projections made by the National Commission on Population and work done by the
Eleventh Plan Working Group on Labour Force and Employment Projections. The projected increase
in labour force during the Eleventh Plan is now estimated as 45 million.
Since the backlog of unemployed in 2006-07 were reckoned as 36.7 million, the total requirement of
employment opportunities works out to be about 82 million.
With the generation of additional employment opportunities of the order of 58 million in the Eleventh
Plan, the backlog of unemployed at the end of the

Table 4 : Population, Labour Force and Employment Projection
Million

2004-05 2006-07 2011-12 2016-17

(a) Population 1,092.8 1,128.1 1,208.0 1,283.2
(b) Labour Force 419.6 438.9 483.6 524.0
(c) Employment opportunities 384.9 402.2 460.3 518.2
(d) Unemployed 34.7 36.7 23.3 5.8
(e) Unemployment Rate (%) 8.28 8.36 4.83 1.12

Source : Planning Commission (2007), Eleventh Five Year Plan, Vol.1., p.71

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