(MENAFN- KNN India)
New Delhi, Oct 5 (KNN)
The Ministry of Labour and Employment reported a 36 percent increase in employment between 2016-17 and 2022-23, translating to approximately 17 million new jobs.
This period also saw the gross domestic product (GDP) grow at an average rate exceeding 6.5 percent annually.
The Reserve bank of India's KLEMS database, which draws from surveys such as the Employment and Unemployment Survey (EUS) and Periodic Labour Force Survey (PLFS), indicates a consistent rise in employment since the 1980s.
The ministry highlighted that the PLFS data from 2017 to 2023 shows an increase in the Worker Population Ratio (WPR) by 9 percentage points, or nearly 26 percent.
In addressing the rhetoric of joblessness, the ministry emphasised that cross-comparison of databases does not support such claims.
They noted that consumption-driven growth, closely linked to employment, suggests job creation is occurring across various sectors.
The ministry argues that rising consumption levels indicate employment generation, as consumption would likely decline if jobs were predominantly unpaid or low-wage.
The ministry introduced the concept of "employment elasticity" as a measure to assess the relationship between economic growth and job creation.
Using a linear econometric model, estimates show a 1.11 percent increase in jobs for every one percent increase in value added during the 2017-23 period.
Additionally, the labour-capital ratio for the economy overall is approximately 1.11, with the services sector slightly higher at 1.17.
These figures, according to the ministry, refute the notion that the services sector fails to generate jobs due to low labour intensity. They assert that both supply-side and demand-side indicators are inconsistent with claims of joblessness in India's economic landscape.
The country's economic performance in the fiscal year 2023-24 further underscores this growth trajectory.
Real GDP is estimated to grow by 8.2 percent in FY 2023-24, up from 7 percent in the previous fiscal year. Nominal GDP growth is projected at 9.6 percent for FY 2023-24, following a 14.2 percent growth rate in FY 2022-23.
The Ministry of Labour and Employment concludes that India's economic orientation, characterised by a robust democracy, dynamic economy, and cultural diversity, continues to position the country as an emerging global powerhouse, inspiring international observers.
(KNN Bureau)
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