RBI estimates 5% rise in jobs to 580m in 2022-23

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There is an estimated increase in the number of people having jobs by nearly 5% to 580 million in the financial year 2022-23, according to a report by Mint. Estimates by the Reserve Bank of India (RBI), suggests a significant expansion in employment opportunities within India during that period. This growth is likely attributed to several factors, with one prominent factor being the recovery from the economic disruptions caused by the COVID-19 pandemic.

The pandemic years, particularly 2020 and parts of 2021, witnessed widespread job losses and economic slowdowns across various sectors due to lockdowns, disruptions in supply chains, and decreased consumer demand. As economies gradually reopened and adapted to the new normal, employment opportunities began to rebound, leading to a surge in job creation.

These estimates are likely based on an analysis of data from the Periodic Labour Force Survey (PLFS) and KLEMS database. KLEMS focuses on productivity and input-output relationships within the economy, whereas PLFS provides detailed insights into the labor market, including employment trends, demographic characteristics, and unemployment rates. Together, these datasets offer a comprehensive understanding of economic performance and labor market dynamics, informing policy decisions and strategies for sustainable growth and development.

The RBI’s KLEMS database, which stands for capital (K), labour (L), energy (E), materials (M), and services (S), a valuable resource for policymakers, researchers, and analysts to understand and evaluate the productivity and efficiency of an economy. The data included in KLEMS helps in assessing the overall health and dynamism of the labor market, informing policy decisions aimed at promoting sustainable economic growth and employment generation.

The reported growth until now in the number of employed individuals, as indicated by the KLEMS database findings is approximately 30 million from 553 million in 2021-22, reflects a promising development for the economy, signaling progress towards recovery and expansion. These initial findings provide valuable insights into employment trends and serve as a foundation for further analysis and policymaking efforts aimed at fostering sustainable economic growth and prosperity.

According to KLEMS data for 2021-22, the agriculture and allied sectors saw the creation of the highest number of jobs, totaling 237 million, followed by 68 million jobs in construction and 63 million in trade. The total employment in India surged to 553 million in 2021-22, up from 471 million in 2017-18, indicating an increase of 82 million jobs over the four-year period.