India added 8.8 million jobs in April: Report
Kolkata:
In one of the biggest expansions in the labor market since the start of the pandemic, 8.8 million people joined the country’s workforce in April, according to data provided by the Center for Monitoring Indian Economy (CMIE).
However, the jobs that became available were insufficient compared to the demand.
CMIE Managing Director and CEO Mahesh Vyas said India’s labor force grew from 8.8 million to 437.2 million in April, the biggest monthly increase since the start of the pandemic.
He said the country’s labor market stood at 428.4 million in March.
According to the data, the average monthly increase in the country’s labor force was 0.2 million in 2021-22.
The report said an increase in labor force participation to 8.8 million was possible only when some working-age people who were out of jobs joined the working population in April.
This is because the working-age population cannot grow by more than two million per month and any further increase means that those who were out of jobs return to the workforce, the report said.
It may be useful to note that the increase of 8.8 million in April comes after a decline of 12 million during the previous three months, it said.
Vyas said the labor market is dynamic with the workforce moving in and out, possibly depending on demand at a given point in time.
Employment growth in April was in industry and services. According to the data, the industry added 5.5 million jobs and services and added 6.7 million jobs.
Within industry, the manufacturing sector created 3 million jobs, while construction added about 4 million opportunities.
CMIE data shows that employment in the agriculture sector has declined by 5.2 million.
Part of the decline in agricultural opportunities may be a reflection of the end of the rabi harvesting season, the report said, adding that the fall in wheat production also acted as a contributing factor.
The new industry jobs added are unlikely to be of better quality as the growth has mainly been among daily wagers and small traders, the report said.
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