In one of the largest expansions in the labor market since the beginning of the pandemic, 8.8 million people joined the workforce in April, as per data provided by the Center for Monitoring Indian Economy (CMIE). However, the jobs that became available were inadequate compared to the demand, it said.
India’s labor force increased by 8.8 million to 437.2 million in April, the largest monthly increase since the beginning of the pandemic, said CMIE Managing Director and CEO Mahesh Vyas. “The major labor market was at 428.4 million in March,” he added.
In 2021-22, the average monthly increase in the labor force was 0.2 million, as per the data.
As per the report, an increase in labor force participation was only possible if 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 beyond any rise that implies that those who have returned to work out of the workforce, the report further said.
“It may be useful to note that the 8.8 million increase in April comes after a 12 million fall during the preceding three months,” it said.
Vyas said the labor market is dynamic with the workforce moving in and out, presumably dependent on demand at a given point of time. The increase in employment in April was in the industry and in services. Three million jobs were created in manufacturing, while construction added about 4 million opportunities.
Employment in the agricultural sector fell by 5.2 million, CMIE data showed. Part of the decline in farm sector opportunities could be a reflection of the winding down of the rabi harvesting season, the report said, adding that decline in wheat production also acted as a contributory factor.
The new industry jobs are likely to be of better quality as the rise was largely among daily wagers and small traders, the report said.
May 15, 2022
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