The real estate and construction sector will create over 15 million jobs over the next five years despite signs of stress in the segment in the last few quarters, the Economic Survey said on Monday.
Real estate and construction together is the second largest employment provider in the country, next only to agriculture, according to the Economic Survey 2017-18, tabled in Parliament.
The sector employed over 40 million workforce in 2013, and as per projections, it is slated to employ over 52 million workforce by 2017 and 67 million workforce by 2022.
“This implies that it will generate over 15 million jobs over the next five years, which will translate to about three million jobs annually,” the survey report said.
Nearly 90 per cent of the workforce employed in the real estate and construction sector are engaged in construction of buildings, while the rest 10 per cent workforce is involved in building completion, finishing, electrical, plumbing, other installation services, demolition and site preparation.
Over 80 per cent of the employment in real estate and construction constitutes minimally skilled workforce, while skilled workforce account for over 9 per cent share, and the remaining are spread across work classes such as clerical, technicians and engineers.
As per the National Skill Development Council (NSDC), real estate and construction sector is expected to require over 66 million people by 2022.
The share of real estate sector which includes ownership of dwellings accounted for 7.7 per cent in India’s overall GVA (Gross Value Added) in 2015-16.
The growth of this sector decelerated in the last three years from 7.5 per cent in 2013-14 to 6.6 per cent in 2014-15 and further to 4.4 per cent in 2015-16, the report said.
Based on an analysis of the sales results of services sector firms in the last few quarters, the survey said the only sector which has been showing signs of stress is the construction and real estate sector.
However, the report said, the enactment of Real Estate (Regulation & Development) Act would bring accountability, leading to higher growth across the real estate value chain.
The provisions of compulsory disclosures and registrations would ensure transparency in the sector.