India’s Government Disputes Citigroup’s Report on Employment
The central government of India has strongly refuted a recent report by Citigroup regarding the state of employment in the country. The Ministry of Labour and Employment stated that the report did not consider all official data sources available.
Citigroup’s Report
Citigroup’s report, widely quoted in the media, predicted that India would struggle to create enough jobs even with a 7% growth rate. The report estimated that India needs to create about 12 million jobs annually over the next decade but can only generate 8-9 million jobs per year at the current growth rate.
Government’s Response
The Ministry of Labour and Employment criticized the report for relying on private data sources, which they claim have several shortcomings. The Ministry emphasized that official data sources like the Periodic Labour Force Survey (PLFS) and the Reserve Bank of India’s KLEMS data provide a more accurate picture.
According to PLFS and RBI’s KLEMS data, India generated over 80 million employment opportunities from 2017-18 to 2021-22, averaging over 20 million jobs per year. This contradicts Citigroup’s assertion of insufficient job creation.
Positive Employment Trends
The Annual PLFS report showed improvements in labour market indicators such as Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR) for people aged 15 and above from 2017-18 to 2022-23. The data indicated that more jobs were created than the number of people joining the labour force, leading to a consistent reduction in the unemployment rate.
EPFO and NPS Data
The Ministry also cited data from the Employees’ Provident Fund Organisation (EPFO) and the National Pension System (NPS). During 2023-24, over 13 million new subscribers joined EPFO, more than double the number from 2018-19. Additionally, more than 775,000 new subscribers joined NPS under the Central and State governments during 2023-24, a 30% increase from the previous year.
Future Prospects
The Ministry asserted that the future of India’s employment market is highly encouraging, with significant growth in Global Capability Centers (GCCs) and the gig economy promising more job opportunities.
