Ministry Rebuts Citigroup Report, Highlights Positive Employment Trends in India

The Ministry argues that the report overlooks comprehensive and positive employment data from official sources such as the Periodic Labour Force Survey (PLFS) and the Reserve Bank of India's KLEMS data.

The Ministry of Labour and Employment has strongly rebuffed a recent Citigroup report on employment in India, which suggests the country may struggle to create sufficient jobs even with a 7% growth rate. The Ministry argues that the report overlooks comprehensive and positive employment data from official sources such as the Periodic Labour Force Survey (PLFS) and the Reserve Bank of India's KLEMS data.

According to official figures, India has generated over 80 million employment opportunities from 2017-18 to 2021-22, averaging more than 20 million jobs annually. This substantial employment creation, despite global economic challenges including the COVID-19 pandemic, contradicts Citigroup’s assertions.

The PLFS data highlights improving trends in key labour market indicators from 2017-18 to 2022-23. The Worker Population Ratio (WPR) has increased from 46.8% to 56%, while Labour Force Participation Rate (LFPR) rose from 49.8% to 57.9%. Concurrently, the Unemployment Rate has declined from 6.0% to 3.2%, showcasing the effectiveness of government policies aimed at boosting employment.

Formal sector employment, as indicated by EPFO data, has also seen significant growth. Over 1.3 crore subscribers joined EPFO in 2023-24, more than double the figures from 2018-19. Additionally, the National Pension System (NPS) recorded over 7.75 lakh new subscribers in 2023-24, underscoring increased public sector employment.

The flexi-staffing sector, according to the Indian Staffing Federation, employs approximately 5.4 million formal contract workers, highlighting ongoing demand and labour shortages across various industries.

Looking forward, India's employment market shows promising prospects, with growth in Global Capability Centers (GCCs) and the gig economy projected to significantly expand. The gig economy alone is expected to engage 2.35 crore platform workers by 2029-30, reflecting robust economic potential.

The Ministry underscores the credibility of official data sources like PLFS and cautions against relying on private data sources that may not align with national or international standards. Such selective use of data, the Ministry argues, can lead to misleading interpretations of India's employment landscape.

In summary, the Government remains committed to fostering a resilient and inclusive job market, supported by substantial improvements in key employment indicators and ongoing initiatives across various sectors.