Employment Growth: PIB’s research unit quoting a recent report from Observer Research Foundation claimed that employment in India increased by 36% (1.7 Crore jobs) between 2016-17 and 2022-23. During the same period, GDP grew at an average rate of over 6.5%.
Employment data from RBI’s KLEMS database relies on surveys like the Employment and Unemployment Survey (EUS) and Periodic Labour Force Survey (PLFS). This indicates a steady rise in employment since 1980s, showed in graph below.
Employment Growth: Worker Population Ratio
PIB quoted the PLFS data from 2017 to 2023. The data suggests that Worker Population Ratio (WPR) has increased by almost 26 percent during this period. The chart bellow shows the WPR among males and females in rural and urban areas during the said time period.
Employment Growth: Latest Economic Survey
PIB research unit also quoted the data from the latest Economic Survey of India. The survey shows Indian labour market indicators have improved significantly with the unemployment rate declining to Indian labour market indicators have improved significantly with the unemployment rate declining to 3.2% in 2022-23.
It also claims that Agriculture employing over 45% of the workforce remains dominant. However, there is a gradual shift toward manufacturing and services. The female labor participation rate has steadily increased, claimed survey. On the other hand, factories employing over 100 workers experienced 11.8% growth between FY18 and FY22.
Other Finding Of The Economic Survey
- The yearly net payroll additions to the EPFO have more than doubled from 61.1 lakh in FY19 to 1.31 crore in FY24.
- India’s gig economy is expanding rapidly, with the workforce in this sector expected to grow to 2.35 crore by 2029-30.
- During FY15-FY22, the wages per worker in rural areas grew at 6.9% CAGR (Compound Annual Growth Rate). This is 6.1% CAGR in urban areas.
- Youth (age 15-29 years) unemployment rate has declined from 17.8% in 2017-18 to 10% in 2022-2023.
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