The impressive employment growth in India over the past five years is evident, with an estimated 110 million new jobs created since 2017-18. As per the KLEMS database, the agriculture and allied sectors led the job creation drive in 2021-22, accounting for approximately 237 million jobs. The construction and trade sectors followed closely, generating 68 million and 63 million jobs, respectively. Notably, industries involved in manufacturing refined petroleum products witnessed the lowest job creation, with only 324,000 jobs. The plastics industry, on the other hand, created a significant 1.32 million jobs.
Economists attribute the surge in employment to the reopening of job opportunities that were lost during the pandemic, rather than the creation of entirely new ones. This indicates that the economy is rebounding from the challenges of the COVID-19 pandemic. The increase in employment is particularly significant considering the severe impact the pandemic had on both organized and unorganized sectors.
The PLFS data encompasses a wide spectrum of employment types, including organized, unorganized, self-employed, and agricultural workers, providing a comprehensive view of the employment landscape in India. This data plays a crucial role in aiding policymakers and analysts in understanding the nuances of India’s workforce dynamics and formulating effective policies.
In 2021-22, India’s total employment generation reached 553 million, a substantial increase of 82 million jobs compared to 471 million in 2017-18. While the unemployment rate among female workers has seen a significant decline from 5.6% in 2017-18 to 2.9% in 2022-23, the unemployment rate among youth, including women, has also decreased from 17.8% to 10% during the same period.
