India's job growth rate doubles to 6% in FY24
India provisionally added 46.7 million jobs in the financial year ending March 2024, as per a report by the Reserve Bank of India (RBI) released on Monday. This surge brought the nation's total employment to 643.3 million. The RBI data revealed that the country's job growth rate for that fiscal year stood at an impressive 6%, marking a significant leap from the previous year's rate of 3.2%.
RBI adopts new reporting methodology for FY23/24
The RBI's report, traditionally known for presenting historical data, attempted a provisional estimate of productivity for the total economy for the first time in FY23/24. This innovative approach was based on available information, indicating a significant shift in the central bank's reporting methodology. The change was revealed alongside the employment growth data on Monday.
Citibank predicts job shortfall despite GDP growth
A Citibank report released last week projected that even with a near 7% GDP growth, India would only manage to create between 8 million to 9 million jobs. This falls short of the estimated requirement of between 11 million to 12 million jobs. "Even 7% GDP growth might not be able to fulfil the job requirement over the next decade," noted Samiran Chakraborty, Citi's chief India economist, in his report.
Centre refutes Citigroup's concerns over Indian job creation
In response to Citibank's projection, the Ministry of Labour and Employment issued a separate statement today, coinciding with RBI's employment report. The ministry has disclosed that India generated over 8 crore job opportunities from 2017-18 to 2021-22. This averages out to over 2 crore (20 million) jobs annually. This figure contradicts Citigroup's assertion of a potential employment shortage in India, even considering disruptions caused by the COVID-19 pandemic.
