India Sees 36% Rise in Employment Over Six Years, Government Reports -  Recent government data reveals that employment in India rose by 36 percent, translating to 17 million jobs, from 2016-17 to 2022-23. This increase stands in stark contrast to the narrative of "jobless growth" often discussed in economic circles.

During the same timeframe, the country’s gross domestic product (GDP) grew at an average rate exceeding 6.5 percent. The data comes from the Reserve Bank of India's KLEMS database, which relies on various surveys, including the Employment and Unemployment Survey (EUS) and the Periodic Labour Force Survey (PLFS). According to the Ministry of Labour and Employment, employment has been on a steady rise since the 1980s.

"India has witnessed significant employment growth over the years. The nation's economic trajectory shows sustained job creation across key sectors. With a robust democracy, a dynamic economy, and a culture that celebrates unity in diversity, India's journey towards becoming a global powerhouse continues to inspire the world," said the ministry.

Data from the PLFS indicates that the Worker Population Ratio (WPR) increased by nearly 26 percent, or 9 percentage points, from 2017 to 2023. The ministry stated that the notion of widespread "joblessness" does not hold up when comparing different data sources.

The growth in employment is closely linked to rising consumption. Higher consumption rates generally indicate job creation, as a decline would suggest that employment is largely comprised of unpaid or low-wage roles.

The ministry explained that "employment elasticity" serves as an important measure to evaluate the relationship between economic growth and job generation. Estimates show that from 2017 to 2023, every one percent increase in value added led to a 1.11 percent rise in jobs.

In addition, the overall labour-capital ratio in the economy is around 1.11, while the services sector has a ratio of 1.17. The ministry emphasized that the argument suggesting services fail to create jobs due to low labour intensity is not supported by these findings. Instead, the data suggests the opposite: India's economic structure contradicts any claims of joblessness.

Looking ahead, the country’s economic performance for the fiscal year 2023-24 shows promising growth. Real GDP is projected to grow by 8.2 percent compared to 7 percent in 2022-23. Moreover, nominal GDP is expected to see a growth rate of 9.6 percent, down from 14.2 percent in the previous fiscal year.

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