rewrite this title and make it good for SEO’Only 5-7% of the population has formal jobs…’: CIO raises alarm over India’s deepening crisis

India’s job market is facing a hard truth — only 5-7% of the population holds formal jobs, and nearly 40% of them are in the government or public sector. This stark reality, highlighted by CIO Mihir Vora of Trust Mutual Fund, raises a pressing question: Has India truly allowed its private sector to flourish?

Taking to X, Mihir Vora pointed out the deep-rooted structural issues in India’s employment landscape. “We’ve really not allowed the private sector to flourish,” he wrote, emphasizing the need for large-scale job creation. According to him, sustainable employment will only emerge by fostering private sector growth in manufacturing, infrastructure, and real estate—sectors that demand strong business confidence and policy support.

“Jobs will only be created in large numbers by creating physical assets—manufacturing, factories, infrastructure, real estate—with private sector ‘animal spirits’.” He further stressed that ease of doing business is a prerequisite for unlocking the full potential of the job market.

The Economic Survey 2024-25 underscores this concern, projecting that India needs to create 7.85 million non-farm jobs annually until 2030. The survey, prepared by the Chief Economic Advisor to the Finance Ministry, highlights that employment generation is critical to leverage India’s demographic dividend and accelerate its shift from an agrarian to a non-farm workforce.

With 26% of India’s population aged 10-24 years, the survey describes the country as standing at the cusp of a once-in-a-lifetime demographic opportunity. However, without strong policy interventions, job creation, and skill development, experts warn that India’s demographic dividend could turn into a demographic disaster.

The survey notes a decline in unemployment and improvements in labor force participation, yet warns that these gains will not be sustainable unless labour laws are made flexible, compliance burdens are eased, and business regulations are streamlined.