Positive signs came out from India’s job market with the Reserve Bank of India (RBI) reporting a significant jump in employment.
- India’s job growth rate doubled to 6% in the financial year 2023-24 (FY24), adding a substantial 46.7 million jobs. This marks a major improvement from the previous year’s 3.2% growth.
- The RBI introduced a new approach for FY24, providing a provisional estimate of national employment and productivity. This reflects a move towards more comprehensive reporting.
Citibank Forecasts Potential Job Deficit: A recent report by Citibank predicts a job shortfall despite a projected 7% GDP growth for India. They estimate the creation of only 8-9 million jobs against a required 11-12 million.
The Indian government offers a contrasting viewpoint:
- Ministry Counters Job Shortage Claims: The Ministry of Labour and Employment counters Citibank’s concerns. They highlight India generating over 80 million jobs between 2017-18 and 2021-22, averaging over 20 million jobs annually.
While the RBI data indicates positive India’s Job Growth Rate, a wait-and-watch approach is necessary. The government’s job creation figures differ from Citibank‘s predictions. Time will tell if India’s economic progress translates into sufficient job opportunities for its growing workforce.
