India’s monthly economic review for October showed the employment rate in India gaining health, signalling a pick up in economic activity. After the pandemic and amid global shocks, various sectors have started healing, showed several indicators in the review, including the EPFO (Employees’ Provident Fund Organisation) records which registered a double digit on-year growth. A slowdown in demand for work under MGNREGS surfaced as a sign of healthy recovery in the rural economy and a jump in employment in both agricultural and non-agricultural activities, the report highlighted.
The Ministry of Finance noted a significant increase in employment for the eighth consecutive month in October. “Employment components of PMI Manufacturing and PMI Services continue to be in an expansionary zone, with October 2022 data highlighting the eighth month of successive increase in employment across the Indian manufacturing industry driven by sales growth and a rise in output,” the ministry said. Net payrolls in September witnessed an on-year growth of 46 per cent, according to the EPFO records.
At a time when global tech giants are laying off employees in thousands, India displayed the strongest growth in the index of hiring intentions. Among the sectors pulling the hiring bandwagon, IT and educational services sectors lead by a wide margin. According to October’s economic review, established businesses show higher intent of hiring than start-ups in the country. This is likely to create a significant volume of jobs amid favourable market conditions.
Supporting the positive conditions was the data from the 16th Periodic Labour Force Survey by the National Statistical Office. The data showed that India’s unemployment rate for people aged 15 years and above in the urban regions of the country declined to 7.2 per cent in the second quarter of the current fiscal, from 9.8 per cent during the same period previous year. The unemployment rate among females falling in that particular age group slid down from 11.6 per cent last year to 9.4 per cent in Q2FY23. Among males the rate came down to 6.6 per cent from 9.3 per cent in July-September quarter of 2021.