India's demographic landscape is undergoing a significant transformation, with a rising working-age population and declining fertility rates. According to a 2023 report by the Sample Registration System (SRS), the proportion of the working-age group (15-59 years) in India has increased from 53.4% in 1971 to 66.1% in 2023. This shift presents both opportunities and challenges for the country's economic and social development.
Among all states and union territories in India, Delhi has the highest percentage of working-age population at 70.8%, followed by Telangana at 70.2% and Andhra Pradesh at 70.1%. These three regions are leading the way in harnessing their demographic dividend. Conversely, Bihar has the lowest ratio of working-age population at 60.1%.
Factors Contributing to the High Working-Age Population Ratio
Several factors contribute to the high working-age population ratio in Delhi, Telangana, and Andhra Pradesh:
- Declining Fertility Rates: All three states have experienced a significant decline in fertility rates over the past few decades. This trend has resulted in a smaller proportion of the population in the 0-14 age group and a larger share in the working-age group. Andhra Pradesh's Total Fertility Rate (TFR) has dropped to 1.5, which is below the replacement level of 2.1.
- Increased Life Expectancy: Improvements in healthcare and living standards have led to increased life expectancy in these states. This means that more people are living longer and remaining in the working-age group for a longer period.
- Migration: Migration patterns also play a role. Cities like Hyderabad in Telangana and Delhi attract people from other parts of the country seeking employment and educational opportunities. This influx of working-age individuals further contributes to the high ratio.
Implications and Challenges
A high working-age population ratio can be a major economic advantage, as it provides a larger pool of potential workers and contributors to the economy. However, it also presents certain challenges:
- Job Creation: To fully realize the benefits of a large working-age population, it is crucial to create sufficient employment opportunities. If a significant portion of the working-age population remains unemployed, it can lead to social and economic problems. Despite Telangana having a large percentage of its population in the working-age group, the unemployment rate stood at 5.1% in 2024.
- Skill Development: A skilled workforce is essential for driving economic growth. Governments and educational institutions need to invest in skill development programs to equip the working-age population with the necessary skills to meet the demands of the labor market.
- Aging Population: While a large working-age population is currently an advantage, these states need to plan for the future, as this population will eventually age. Social security systems and healthcare infrastructure need to be strengthened to support the growing elderly population.
Government Initiatives
Recognizing the importance of harnessing the demographic dividend, the governments of Delhi, Telangana, and Andhra Pradesh have launched various initiatives:
- Telangana: The Telangana government has been undertaking several initiatives that impart skills and provide employment opportunities to people, such as the employment through Skills Training & Placement (EST&P) program.
- Andhra Pradesh: The Andhra Pradesh government is embarking on a unique initiative, the Skill Census-2024, to understand the skills and competencies of the state's workforce, as well as identify the skill sets that industries require.
- Delhi: No specific initiatives could be identified in the search results, but Delhi has a high Labour Force Participation Rate.
By implementing appropriate policies and investing in education, skill development, and infrastructure, Delhi, Telangana, and Andhra Pradesh can leverage their high working-age population ratios to achieve sustained economic growth and improve the quality of life for their citizens.