How GST will impact the job market?
Designation : - Managing Director (India & SAARC)
Organization : - Excelity Global, Mumbai
The historic tax reform was rolled out from July 1, is expected to help the formal job sector to attain an annualized growth rate of 10-13 per cent and fuel demand for professionals in various segments of the economy. The uniformity and the reduction in the average tax burden offered by GST will provide a great push to employment creation.
The job market is looking forward to a big boost from the new GST regime and expects over one lakh new employment opportunities, including in specialized areas like taxation, accounting and data analysis. The predictability of cost of products manufactured or services rendered across the country will improve enterprise productivity.
As per the official data from labor ministry, mere 1.55 lakh jobs were created in 2015 and 2.31 lakh in 2016, the lowest levels since the 10 lakh jobs created by the UPA government in 2009.
With the launch of GST, the job market is trying to revive back. GST rollout will boost the hiring across sectors by creating an integrated national market which will boost domestic demand business and drive job creation. It would also lead to a higher output, more employment opportunities, and economic inclusion.
GST is expected to create significant job opportunities as the businesses will need to hire professionals for dedicated GST management, upgradation and reconciliations. Sector - wise, the immediate high - impact segments of GST are expected to be automobiles, logistics, home decor, e-commerce, media and entertainment, cement, IT and ITeS, BFSI, consumer durables, pharma and telecom.
Definitely, GST have some impact on the gains to the State Revenues which requires to have a permanent balance in the economic situation of the country and maintain a comprehensive job market. The predictability of cost of products manufactured or services rendered across the country will improve enterprise productivity which will trigger the expansion of services, capacity and product ranges, resulting in a subsequent increase in manpower requirement.