Employment Data: High Numbers, Mixed Messages
Recent reports from the RBI’s KLEMS database reveal that India added 4.7 crore new jobs in the fiscal year 2023-24, translating to 38 lakh jobs per month. This is the highest annual job creation in over four decades. However, this data is provisional and lacks a detailed sector-wise breakdown, which raises questions about its accuracy.
Comparatively, the Periodic Labour Force Survey (PLFS) provides conflicting numbers. While KLEMS reported 1.9 crore new jobs for 2022-23, the PLFS cited 4.1 crore—showing a discrepancy of 2.2 crore jobs. Such differences in reported figures add to the confusion surrounding employment statistics.
Quality vs. Quantity: The Job Quality Debate
As per a TOI report, the quantity of jobs is only part of the story. Job quality, which includes job stability, duration, and pay, remains a critical issue. In India, a significant portion of the workforce is self-employed or in informal employment, which complicates the assessment of job quality.
For instance, you can be counted as employed even if you worked only one hour in a week, or if you worked for 30 days in a year. This broad definition of employment sometimes includes jobs that are temporary or low-paying.
Regional Disparities and Sectoral Variations
Job quality and employment rates vary significantly across states. For example, youth unemployment in Kerala and Goa is around 30%, while Bihar boasts an almost complete employment rate among its youth. However, farm wages in Kerala are substantially higher than in Bihar, highlighting regional economic disparities.
Global Context and India’s Unique Challenges
Youth unemployment is a global issue, affecting countries like Brazil, China, and South Africa. What sets India apart is the lack of clarity regarding employment basics, such as job duration and income adequacy. This lack of understanding complicates efforts to address employment issues effectively.
Employment Status
Annual Status: Employment status is categorised into two types: ‘Principal Status’ and ‘Subsidiary Status’. A person is considered employed in ‘Principal Status’ if they worked for a significant portion of the 365 days before the survey. Those who worked for at least 30 days during this period are categorised under ‘Subsidiary Status’. Individuals may hold multiple jobs at different times. This information is compiled annually in the Periodic Labour Force Survey (PLFS), with reports covering the July-June period typically released in October. The most recent report available is for July 2022 to June 2023.
Current Weekly Status: This classification considers individuals employed if they worked at least one hour on any day within the past week before the survey. Data for this status is published in two forms: an annual report that includes figures for both rural and urban areas, and separate quarterly reports focusing solely on urban employment. The quarterly data for January-March 2024 was released in May 2024.
Inputs from TOI