India adds 4.2 crore jobs in FY24, lower than RBI's estimate
By : Sangeetha G
Update: 2024-09-28 08:04 GMT
Chennai: India added 4.2 crore jobs in FY24, as per the calculations done by ICRA using the PLFS data and this is lower than 4.7 crore estimated by RBI earlier.
The PLFS survey had estimated that the unemployment rate in India remained at 3.2 per cent in FY24. As per the calculations made by ICRA, based on the population projections released by the Ministry of Health and Family Welfare and the PLFS data, the country added 4.2 crore jobs in FY24. This was significantly lower than RBI’s estimate of 4.7 crore.
While RBI found that the total number of employed people at the end of last fiscal was 64.33 crore across 27 sectors, ICRA finds that India’s workforce rose to 61.1 crore.
Around 1.4 crore regular wage/salaried jobs were added in 2023-24, implying an improvement in the quality of jobs. However, 3.1 crore workers were added in the self-employed category, with an unusual surge in helpers at 1.4 crore, pointing to inadequate formal job opportunities.
Nearly 50 per cent or 2.1 crore jobs were added in the agriculture sector. The value added per worker in the agricultural sector declined by 6.4 per cent, reflecting a continued moderation in labour productivity and a possible rise in disguised unemployment.
Though female participation in the workforce increased by 2.7 crore, the quality of this expansion does not appear favourable. A bulk of such addition, almost 1.7 crore, was under the agriculture sector. Additionally, the self-employed segment accounted for an astounding 82 per cent at 2.2 crore. The share of regular wage stood at a low 16 per cent.
The real wage growth of the salaried class turned positive at 0.8 per cent in 2023-24 after being stagnant in 2022-23, with an easing of headline inflation to 5.4 per cent from 6 per cent and uptick in nominal wage growth to 6.2 per cent from 6 per cent. Nevertheless, the real wage growth still trails the pre-Covid level of 3.4 per cent in 2018-19.
The PLFS survey had estimated that the unemployment rate in India remained at 3.2 per cent in FY24. As per the calculations made by ICRA, based on the population projections released by the Ministry of Health and Family Welfare and the PLFS data, the country added 4.2 crore jobs in FY24. This was significantly lower than RBI’s estimate of 4.7 crore.
While RBI found that the total number of employed people at the end of last fiscal was 64.33 crore across 27 sectors, ICRA finds that India’s workforce rose to 61.1 crore.
Around 1.4 crore regular wage/salaried jobs were added in 2023-24, implying an improvement in the quality of jobs. However, 3.1 crore workers were added in the self-employed category, with an unusual surge in helpers at 1.4 crore, pointing to inadequate formal job opportunities.
Nearly 50 per cent or 2.1 crore jobs were added in the agriculture sector. The value added per worker in the agricultural sector declined by 6.4 per cent, reflecting a continued moderation in labour productivity and a possible rise in disguised unemployment.
Though female participation in the workforce increased by 2.7 crore, the quality of this expansion does not appear favourable. A bulk of such addition, almost 1.7 crore, was under the agriculture sector. Additionally, the self-employed segment accounted for an astounding 82 per cent at 2.2 crore. The share of regular wage stood at a low 16 per cent.
The real wage growth of the salaried class turned positive at 0.8 per cent in 2023-24 after being stagnant in 2022-23, with an easing of headline inflation to 5.4 per cent from 6 per cent and uptick in nominal wage growth to 6.2 per cent from 6 per cent. Nevertheless, the real wage growth still trails the pre-Covid level of 3.4 per cent in 2018-19.