Source | The Times Of India : By Subodh Varma
Just over one lakh jobs were added between April 1 and October 1 last year in eight key non-farm sectors of the economy ranging from manufacturing and construction to IT/BPO, education and health, according to a recent government report. Is this good or bad?
Considering that these eight sectors together employ over two crore workers, the net addition of new jobs amounts to a mere half a per cent of the total. So, it’s bad news for the economy and another red flag for the government.
The report in question is the third quarterly employment report, which was revamped by the government last year with new sectors included and a larger sample size of over 10,000 establishments.
The first report, released last year, set the baseline of employment as on April 2016. The report shows that employment is not only inching up at a painfully slow pace but also that aggregate figures hide more severe upheavals. For instance, almost three quarters of 1.09 lakh new jobs added are confined to two sectors — education and health, which added 82,000 new jobs. But the most worrying thing is manufacturing jobs grew by just 12,000 in six months — a rise of 0.1%. This sector, the backbone of the non-farm economy, employs nearly 50% of workers in the selected eight sectors. It has been the focus of the ‘Make in India’ and ‘Skill India’ programmes, as also of efforts to woo FDI.