When developed economies face rising unemployment rates despite a thriving economy, Bharat under PM Modi is displaying positive trends in employment growth despite having a massive population of 1.4 billion. Let us go through the facts.
As per the Reserve Bank of India’s (RBI) latest KLEMS data, employment in the country increased to 64.33 crore in year 2023-24 compared to 47.15 crore in 2014-15. Total increase in employment during 2014-15 to 2023-24 is about 17.19 crore. The KLEMS data is available at https://www.rbi.org.in/Scripts/KLEMS.aspx. It means that in 67 years of administration, 47.15 crores of jobs have been produced, compared to 17.19 crores in the last ten years of the Modi government. This demonstrates the rapid development rate under PM Modi.
Further, Government announced in the Budget 2024-25, the Prime Minister’s package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over a 5-year period with a central outlay of Rs. 2 lakh crore.
The Union Minister of Labour and Employment, as well as Youth Affairs and Sports, announced the EPFO’s provisional payroll figures for July 2024. He stated that EPFO added 19.94 lakh net members in July 2024, the largest recorded growth since payroll data tracking began in April 2018. EPFO added 10.52 lakh new members in July 2024, up 2.66 per cent from June 2024 and 2.43 per cent from July 2023. This growth in new memberships can be ascribed to increasing job opportunities, more understanding of employee benefits, and EPFO’s successful outreach activities. The 18-25 age group experienced the fastest growth, with 8.77 lakh net additions in July 2024. This is the highest increase for this demographic since records began, and it points out the ongoing trend of young individuals, primarily first-time job seekers, entering the organized workforce. This age group accounts for 59.41 per cent of all new members added during the month. Unemployment Rate (UR) on usual status for persons of age 15 years was 6.2 per cent in year 2017-18 and it has gone to 3.2 per cent in year 2022-23.
In July 2024, over 3.05 lakh new female members joined EPFO, representing a 10.94 per cent increase over the previous year. In total, 4.41 lakh net female members were added, becoming the largest monthly addition for women since payroll tracking began, with a 14.41 per cent rise over July 2023. This reflects a shift toward a more inclusive workforce, with increased female participation. This is a shift in India’s employment environment, demonstrating the efficacy of the Modi government’s transformative policies aimed at promoting job creation and formalizing the job market.
This growth in employment indicates a growing work market and more options, particularly for young people and women. India’s tremendous push for economic growth and job creation has been aided by key government initiatives such as the Production Linked Incentive (PLI) Scheme, the Startup India movement, the Employment Linked Incentive Scheme, and significant capital expenditure (Capex) programs. Year-on-year net payroll additions highlight the progress being made: in 2022-23, there were 138.52 lakh net additions, while in 2023-24, the figure was 131.48 lakh.
According to a PTI article, Surjit Bhalla, former India executive director at the International Monetary Fund, claimed that the Narendra Modi government is creating an unprecedented amount of employment on an average basis, with the number reaching around 10 million over the last 7-8 years. He went on to say that the UPA government created the fewest amount of jobs between 2004 and 2013, which gave rise to the moniker ‘jobless growth’. “The Modi government has created the most jobs on record.” Never in Indian history has so many employment been produced on an average basis. Surjit Bhalla told PTI in a video interview that close to 10 million jobs had been created in the last 7-8 years.
Turnaround in Factory employment
According to the Economic Survey, the organized manufacturing sector has rebounded to above pre-pandemic levels, accompanied by greater wage growth in rural areas during the last five years, which bodes well for rural demand generation. Wages per worker in rural areas increased at a CAGR (compounded annual growth rate) of 6.9 percent between FY15 and FY22, compared to 6.1 percent in urban areas. Programmes such as ‘Make in India’, which celebrated its tenth anniversary this week, and the production-linked incentive (PLI) scheme, as well as budget initiatives to boost employment, will continue to drive robust hiring in the manufacturing sector, particularly for blue- and grey-collar roles, according to recruitment firms and companies.
Multiple new opportunities
Data from different sources show that India’s employment market has bright future possibilities. Global Capability Centers (GCCs) in India have expanded dramatically in recent years. The gig economy promises a considerable growth in the country’s workforce. Notably, the NITI Aayog report on the gig economy predicts a significant increase in platform workers, with the figure estimated to reach 2.35 crore (23.5 million) by 2029-30, demonstrating the gig economy’s rapid growth. By 2029-30, gig workers are estimated to account for 6.7 per cent of India’s non-agricultural employment and 4.1 per cent of total livelihood. These advancements show India’s strong economic trajectory and potential for diversified employment opportunities.
Official data sources such as PLFS, RBI, EPFO, and others show steady gains in key labour market indicators over the last five years, including an improved Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR), as well as a lowering Unemployment Rate. EPFO and NPS data reinforce the good employment trends. Manufacturing trends, rising service sectors, infrastructural growth, and emerging opportunities in many sectors such as the gig and platform economy, as well as GCCs, all point to promising futures.
