The latest data from the Reserve Bank of India (RBI) shows a significant boost in employment growth, with the rate standing at 6% for the fiscal year 2023-24, compared to 3.2% in the previous fiscal year. This marks a notable improvement in the country’s job creation landscape.
India provisionally created 46.7 million jobs in the financial year ending March 2024, bringing the country’s total employment to 643.3 million. This impressive increase is highlighted in the RBI’s report on measuring industry-level productivity and employment, released on Monday.
Traditionally, the central bank’s reports have focused on historical numbers. However, this time, the RBI has made a provisional estimate of productivity for the entire economy for the financial year 2023-24 based on the available data. This is a first for the central bank and provides a more current view of the economic landscape.
The release of this data comes on the heels of a Citibank report, which suggested that even a growth rate of close to 7% would only generate between 8 million and 9 million jobs in India. This falls short of the 11 million to 12 million jobs needed.
“Even 7% GDP growth might not be able to fulfill the job requirement over the next decade,” wrote Citi’s chief India economist, Samiran Chakraborty, in the report.
Contradicting Citi’s projections, the federal Labor Department issued a separate statement. The department’s estimates suggest that an average of over 20 million employment opportunities per year were created between 2017-18 and 2021-22. This starkly contrasts with Citi’s more conservative job creation figures.
While the RBI’s report paints a promising picture of employment growth in India, challenges remain in meeting the country’s burgeoning job requirements. Policymakers and industry leaders must continue to focus on sustainable job creation to support India’s growing workforce.
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