India sees 36% surge in employment, adding 17 million jobs: A beacon of growth amid global challenges

Looking ahead, the nation’s economic performance for FY 2023-24 is projected to reflect robust growth, with an estimated real GDP increase of 8.2%, compared to 7% in FY 2022-23

PGurus Newsdesk

October 5, 2024

Looking ahead, the nation’s economic performance for FY 2023-24 is projected to reflect robust growth, with an estimated real GDP increase of 8.2%, compared to 7% in FY 2022-23

India sees significant employment growth over the years

In a remarkable display of economic resilience, India has recorded a 36% increase in employment, equating to 17 million new jobs created between 2016-17 and 2022-23, according to the latest government data. This surge comes amidst ongoing global economic uncertainties, positioning India as a bright spot on the world stage.

During this period, the country’s gross domestic product (GDP) also showed impressive growth, averaging over 6.5%. The Ministry of Labour and Employment attributed this robust employment increase to sustained job creation across various key sectors, emphasizing India’s dynamic economy and commitment to development.

“India has witnessed significant employment growth over the years. Our trajectory demonstrates that job creation is alive and well,” stated the ministry. “With a strong democracy and a culture that celebrates unity in diversity, India’s journey toward becoming a global powerhouse continues to inspire the world.”

Data from the Reserve Bank of India‘s KLEMS database, which incorporates findings from the Employment and Unemployment Survey (EUS) and the Periodic Labour Force Survey (PLFS), highlights a steady rise in employment since the 1980s. The Worker Population Ratio (WPR) also increased by 9 percentage points—almost 26%—between 2017 and 2023, further debunking the narrative of “joblessness.”

This growth has been largely driven by rising consumption, closely linked to employment. The ministry pointed out that increased consumption typically indicates job generation, contradicting the notion that employment is primarily low-wage or unpaid.

The concept of “employment elasticity” was introduced as a measure to analyze the relationship between economic growth and job creation. Estimates show that between 2017 and 2023, for every 1% increase in value-added, there was a corresponding 1.11% increase in jobs.

Moreover, the overall labour-capital ratio stands at approximately 1.11, with the services sector performing even better at 1.17. This challenges the argument that low labour intensity in services hinders job creation, indicating that India’s economic model supports employment generation.

Looking ahead, the nation’s economic performance for FY 2023-24 is projected to reflect robust growth, with an estimated real GDP increase of 8.2%, compared to 7% in FY 2022-23. Nominal GDP is also expected to rise by 9.6% for the upcoming fiscal year.

As India continues to defy global economic trends, these figures serve as a testament to its potential as a thriving hub of job creation and economic stability, reinforcing its position as a significant player on the international stage.

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