NEW DELHI: India added nearly 4.7 crore jobs in the 2023-24 fiscal year, according to a report released by the Reserve Bank of India (RBI) on July 8, 2024. This figure surpasses several other employment estimates.
The employment growth rate for 2023-24 was estimated at 6%, up from 3.2% in 2022-23. This report marks the first time the RBI has projected a provisional estimate of productivity for the fiscal year 2023-24, using available data.
RBI's Employment and Productivity Report
The RBI report provides provisional numbers to measure productivity across 27 industries, which are aggregated into six broad sectors: agriculture, hunting, forestry and fishing, mining and quarrying, manufacturing, electricity, gas and water supply, construction, and services. The KLEMS database, which underpins the report, was compiled using data from sources such as NSO, NSSO, and ASI.
Job Growth Amid Debates on Employment
The release of this data adds to the ongoing debate about job creation, a major issue highlighted in recent general elections. Various other estimates have indicated high unemployment rates, with youth unemployment notably high.
Last week, a Citigroup India report expressed concerns about India's ability to create enough jobs for its growing workforce, even with a 7% economic growth rate. According to Citigroup, India needs to create 1.2 crore jobs annually over the next decade, but current growth rates may only support the creation of 80-90 lakh jobs per year.
Labour Ministry's Response
In response, the labour ministry issued a detailed rebuttal, citing the Periodic Labour Force Survey (PLFS) and RBI's KLEMS data. According to these sources, India generated over eight crore jobs from 2017-18 to 2021-22, averaging over two crore jobs per year despite the economic impact of the COVID-19 pandemic in 2020-21.
The ministry's statement highlighted the decline in the unemployment rate from 6.0% in 2017-18 to 3.2% in 2022-23. It emphasized that more employment opportunities have been created compared to the number of people joining the labour force, leading to a consistent reduction in the unemployment rate.
"This significant employment creation demonstrates the effectiveness of various government initiatives aimed at boosting employment across sectors," the statement read.
Positive Outlook for Indian Job Market
Contrary to the Citigroup report's pessimistic outlook, the official data from PLFS and RBI presents a more positive picture of the Indian job market, reflecting the impact of government policies on employment.
Read More: Beware of Fake UPI Payment Scams, ICICI Bank Issues Warning and Offers Safety Tips
India's e-Rupee Faces Uphill Battle as Daily Transactions Drop