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Employee Provident Fund Organisation data has revealed that almost 50% of the formal sector jobs created in May 2021, the worst month of the second Covid wave, were in security agencies, small contractors and companies that are engaged in cleaning and sweeping services. These might not be exactly the jobs that the educated middle class aspires to, but these are the outfits that generate employment for the people at the bottom of the pyramid that is so vulnerable to economic turmoil as the pandemic has demonstrated.

It also provides strong clues to policymakers to encourage, incentivise and sustain small entrepreneurs and businesses in all possible ways since they would create the bulk of the millions of jobs needed to provide employment to the masses. Some of these businesses might eventually turn into titans in their fields, some might remain in the tiny league, but it is important that the culture of entrepreneurship is fostered throughout the country.

Another revelation from the recently published EPFO data is that Maharashtra, the state worst hit by the pandemic, accounted for about 22% of the total jobs generated in May. What’s most significant is that the state-led the league of states in all the age groups 18-21, 22-25, 26-28, 29-35 and above 35. Only in the “less than 18” category Maharashtra was lagging behind other states, which probably is desirable since an individual is expected to complete school education when he/she is 18.

Though states such as Tamil Nadu, Karnataka, Gujarat and Haryana are fast advancing industrially there is something that Maharashtra is doing right that enables it to generate more than one-fifth of the nation’s employment even in the worst of times. Other states need to study the Maharashtra model, adapt and emulate it as far as possible.