Blue-collar jobs get push in FM Sitharaman’s 33% capex boost in Budget 2023 

 

The Centre’s Budget announcement to boost capital expenditure during 2023-24 by 33 per cent to Rs 10 lakh crore is likely to drive up blue-collar job creation but only over the medium-long term in a country where at least 10 million people enter the labour market every year. 

India, one of the fastest growing economies, has a 450-million-plus-strong workforce. But only 31.8 million Indians are employed in formal jobs as of March, according to government’s quarterly employment survey. With more than 10 million people entering the labour market every year, many have struggled to find jobs, especially the formal kind.   

“The increased capital expenditure would mean strong growth in the job market especially in the blue- collar workforce. Our research revealed that a 9-11 million strong gig workforce is to be added to our job market in the next three years. It will be interesting to see how the job market shifts in the next couple of quarters as India might experience the after-effects of global recession,” said Sashi Kumar, Head of Sales, Indeed India. 

CIEL HR Services Managing Director and CEO Aditya Narayan Mishra sees the Budget 2023 announcements increasing jobs in the core industry sectors of manufacturing, engineering, construction and transportation. “These, in turn, will create a virtuous impact on consumer goods, automotive, hospitality, entertainment, tourism, preventive healthcare and services. Naturally, there will be a boost in jobs in the financial services sector.”  

By earmarking Rs 10 lakh crore for capital expenditure – a 33 per cent jump over the previous financial year’s Rs 7.5 lakh crore budget outlay – the government is betting on a multiplier effect of the investment boost into railways, road, trains, housing and other infrastructure projects to create growth and jobs.  

“The Budget makes the need once again to ramp up the virtuous cycle of investment and job creation. Capital investment is being increased steeply for the third year in a row by 33 per cent to Rs 10 lakh crore,” said Finance Minister Nirmala Sitharaman in her Budget speech on Wednesday. 

Unemployment rate for Indians above the age of 15 years in urban areas declined to 7.2 per cent during July-September 2022 from 9.8 per cent a year ago. In April-June 2022, it was 7.6 per cent in urban areas, according to the Periodic Labour Force Survey (PLFS).   

“India is a large labour market for temporary staff as well. Investment in physical infrastructure like airports, urban facilities etc. will create ample short-term opportunities for semi-skilled and unskilled labour. Additionally, investment in 5G labs, AI capabilities, healthcare and pharmaceutical R&D, will create formal employment opportunities across sectors in the upcoming quarters,” Nagesh Bailur, Chief Financial Officer, Randstad India 

CIEL’s Mishra also sees other Budget announcements boosting manpower-intensive sectors like tourism, agriculture and MSMEs as well as Pradhan Mantri Kaushal Vikas Yojana 4.0’s focus on new skills such as AI, robotics, mechatronics, robotics and AI, creating more jobs.

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