168 million workforce added since FY18, 46.6 million in FY24: RBI data

RBI data shows services sector absorbing those moving out of agriculture

The total number of employed people as a ratio of the total population has increased to 44.2 per cent in FY24 from 34.7 per cent in FY18, with the workforce growing by 168 million during the period at 643.3 million, according to the Reserve Bank of India’s KLEMS database.

Total employment was 596.7 million in FY23, thereby adding 46.6 million in FY24.

The KLEMS data provides insights into five key inputs in production – Capital (K), Labour (L), Energy (E), Materials (M), and Services (S). The database is created for 27 industries aggregated to form six sectors.

While releasing the data, the RBI said a ‘provisional’ estimate of productivity for the total economy had been attempted for the first time in FY24 based on the available information.

 

According to the data, the increase in employment is across education levels and age groups. The unemployment ratio has gone down to 1.4 per cent in FY24 from 2.2 per cent in FY18.

The services sector, excluding construction, is absorbing most of the workforce moving out of agriculture, a sharp contrast from the 2000-2011 decade when construction was the primary absorber.

The data also shows that high-skilled activities, such as financial and business services, education, and health care, are seeing an increase in the share of educated workers. Educated is classified as secondary or higher education.

The government has also released a statement to show the increasing employment opportunities in the country.

“According to the Periodic Labour Force Survey (PLFS) and RBI’s KLEMS data, India has generated more than 80 million employment opportunities between FY18 and FY22, in an average of over 20 million jobs a year, despite the Covid-19 pandemic during 2020-21,” the government said in a statement.

Additionally, National Pension System (NPS) data showed over 775,000 new subscribers in FY24 under the central and state governments, a 30 per cent increase from the 594,000 new subscribers in FY23.

“This substantial increase in new subscribers highlights the government's proactive measures to fill up the vacancies in the public sector in a timely manner,” the statement said.

Citing the Employees’ Provident Fund Organisation (EPFO) data, the government said the number suggests that more and more workers are joining formal jobs.

During FY24, more than 13 million subscribers joined EPFO, which is more than double the 6.1 million in FY19. Between September 2017 and March this year, more than 62 million net subscribers have joined EPFO, it said.