Want more jobs, make labour laws easy, says Economic Survey 2019

The Economic Survey 2018-19 has proposed that government goes for deregulating labour law restrictions to help create more jobs. “Deregulating labour law restrictions can create significantly more jobs, as seen by the recent changes in Rajasthan when compared to the rest of the states,” the Survey said.

Finance minister Nirmala Sitharaman tabled the Economic Survey 2018-19 in Parliament on Thursday.

“A comparison between the indicators for labour, capital and productivity of manufacturing firms makes it clear that flexibile labour laws create a more conducive environment for growth of industry and employment generation,” it said.


“The states which are rigid in respect of their labour laws are suffering in all dimensions and are unable to create enough employment and cannot attract adequate capital into their states,” it added.

According to the Survey, on average plants in labour-intensive industries and in states that have transited towards more flexible markets are 25.4% more productive than their counterparts in states which continue to have labour rigidities.