As per data provided by the Centre for Monitoring Indian Economy (CMIE), in one of the largest expansions in the labor market since the beginning of the pandemic, 8.8 million people joined the country’s workforce in April. The jobs that became available were inadequate compared to the demand.
“India’s labor force increased by 8.8 million to 437.2 million in April, one of the largest monthly increases since the beginning of the pandemic. The country’s labor market was at 428.4 million in March”
CMIE Managing Director & CEO Mahesh Vyas
As per the data, in 2021-22, the average monthly increase in the country’s labor force was 0.2 million. 8.8 million increase in labor force participation was only possible if some working-age people who were out of jobs joined the working population in April.
And this is because the working-age population cannot grow by more than two million per month and any rise beyond that implies that those who were out of jobs returned to the workforce.
The 8.8 million increase in April comes after a 12 million fall during the preceding three months.
As per the data, the increase in employment in April was in the industry and in services. The industry added 5.5 million jobs and services added another 6.7 million jobs.
“The labor market is dynamic with the workforce moving in and out, presumably depending upon the demand at a given point in time”
CEO Mahesh Vyas
Within the industry, 3 million jobs were generated in manufacturing, while construction added nearly 4 million opportunities.
CMIE data showed, that the employment in the agricultural sector fell by 5.2 million.
According to the report, the new industry jobs added are unlikely to be of better quality as the rise was largely among the daily wagers and small traders.
