Between FY14 and FY23, India generated 125 million jobs, a significant increase compared to the 29 million jobs created in the preceding decadal period of FY04-FY14. This data comes from a State Bank of India (SBI) report released on Wednesday.
Decadal Employment Growth
According to the Reserve Bank of India (RBI), India created 125 million jobs during FY14-23. This is a stark contrast to the 29 million jobs created during FY04-14. The report highlights that even when agriculture is excluded, the number of jobs created in manufacturing and services sectors was 89 million in FY14-FY23, compared to 66 million in FY04-FY14.
Employment in MSMEs
The report notes a significant rise in employment within micro, small, and medium enterprises (MSMEs) registered with the MSME Ministry. As of July 4, 46.8 million Udyam-registered MSMEs reported 202 million jobs. This includes 23.2 million jobs from GST-exempted informal micro enterprises, marking a 66% increase from the total of 121 million jobs reported in July of the previous year.
EPFO and KLEMS Data Comparison
The report observes an encouraging trend towards better-paid jobs in the economy. By comparing Employees’ Provident Fund Organisation (EPFO) data with KLEMS data, it was found that in FY24, the share of EPFO jobs was 28%, significantly lower than the average share of 51% over the five-year period from FY19 to FY23. As EPFO data primarily captures low-income jobs, this decline suggests that better-paid jobs are becoming more available.
Labour Force Statistics
The KLEMS data shows that the total labour force in India stands at 597 million, which is closely aligned with the 568 million reported by the ASUSE survey for 2022-23. This consistency contrasts sharply with private employment surveys, which tend to show a lower labour force. The report suggests that these private surveys may have flaws in their sample selection techniques, leading to under-representation of women, young children, and the poor, while over-representing other groups.
Employment in Construction
The report also highlights a significant increase in employment in construction activities. This rise is attributed to the government’s focus on the infrastructure sector, which has driven demand for labour in this area.
Conclusion
The SBI report underscores the substantial growth in job creation in India over the past decade, particularly in the manufacturing and services sectors. It also points to the rise in employment within MSMEs and the emergence of better-paid jobs. However, it criticizes private employment surveys for their lower estimates of the labour force, suggesting they may have methodological flaws. The government’s emphasis on infrastructure development has also contributed to increased employment in construction activities.
