The Government Rebuts Citigroup's Grim Employment Report, Highlights Positive Job Creation Data.
Shimla/New Delhi: The Citigroup's employment report has snowballed into a clash over India's employment scenario.
Ministry of Labour and Employment has strongly countered Citigroup's research report, which painted a bleak picture of job creation in the country.
Citigroup's report suggested that even with a 7% growth rate, India would struggle to generate sufficient employment opportunities.
However, the government refutes this claim, emphasizing comprehensive and positive data from official sources.
According to the Reserve Bank of India's KLEMS data that includes capital, labour, energy, materials and services, India created more than 8 crore (80 million) employment opportunities between 2017-18 and 2021-22, averaging over 2 crore (20 million) jobs per year.
The government pleads that it is significant job creation, despite the COVID-19 pandemic's economic impact. It stands in stark contrast to Citigroup's projections.
Moreover, the Periodic Labour Force Survey (PLFS) data shows a steady improvement in key labour market indicators.
The Worker Population Ratio (WPR) increased from 46.8% in 2017-18 to 56% in 2022-23.
Labour Force Participation Rate (LFPR) rose from 49.8% to 57.9% in the same period. Unemployment Rate dropped from 6.0% to 3.2%.
Further supporting the positive employment trend, over 6.2 crore net subscribers joined the Employees' Provident Fund Organisation (EPFO) from September 2017 to March 2024.
In the 2023-24 fiscal year alone, more than 1.3 crore subscribers joined EPFO, doubling the number from 2018-19.
The National Pension System (NPS) also saw a 30% increase in new subscribers in 2023-24 compared to the previous year.
The Ministry criticized Citigroup's reliance on private data sources, which it claims are often not as robust or representative as official statistics.
It cautioned against the selective use of such data, which can lead to misleading conclusions.
The job markets are diverse and expanding. Ministry pointed to the growth of Global Capability Centers (GCCs).
The government cites gig economy, projected to employ 2.35 crore (23.5 million) platform workers by 2029-30.
The Indian Staffing Federation (ISF) also reported a significant number of formal contract workers, though there remains unmet demand in sectors like manufacturing, retail, and banking.
The government asserts that it remains committed to creating a robust and inclusive job market.
The official data shows substantial progress in employment generation.
The Ministry urges caution against reports like Citigroup's, which it argues do not reflect the comprehensive and positive trends seen in the Indian job market.
