Latest Employment Trends
The economy finds its way back to equilibrium even when it is thrown out of balance in the worst ways possible. Take for instance the 2009 financial crisis or the most recent Covid-19 pandemic. Both scenarios shook the economy and made it crumble from the ground below, throwing millions of people out of jobs. It is interesting to note that employment rates and economic growth go hand in hand. When economies prosper, there is an overall increase in production when economic activity is high and to match this output more people are required to produce the increased amount of goods and services. Employment rates go up. And the opposite effect ensues when economic activity is low, where to prevent losses, firms cut jobs and unemployment rises. Now does this mean that unemployment rate reaches 0 when economies continue to prosper. The answer is a NO. The labour market is a no exception to the laws of demand and supply. And several factors including frictional and structural unemployment always make sure that there is some level of unemployment
The Indian and global economy is so versatile with changing governments and political scenarios that a common man has to make himself immune to all these changes. Despite inflation soaring high, the unemployment rate in India falls to an all-time 11- month low of 6.57%, the lowest since March 2021.
The Quarterly Employment Survey (QES) conducted from July-September of 2021 across 9 sectors which include Manufacturing, Construction, Trade, Transport, Education, Health, Accommodation & Restaurant, IT/BPO and Financial Services shows an increase of 2 lakhs and stands at 3.10 crores higher than the estimated employment from the previous round of QES.
The survey further indicates an increase of 2.8% in female participation in the workforce. Though these numbers look promising, for a country to develop on an overall level, it is important to provide a safe working space for women and make sure they do not face any kind of harassment. It is a no-brainer that there exists a wage gap between men and women for the same kind of work across the globe. India can truly stand apart in the global arena when it starts to bridge this wage gap at home and stand as an example for the global community.
From the selected sectors, we can see that Manufacturing accounted for nearly 39%, followed by Education with 22% and Health as well as IT/BPOs sectors both around 10%. Trade and Transport sectors engaged 5.3% and 4.6% of the total estimated workers respectively.
It is interesting to note that the QES further throws light on the IT/BPO sector being the biggest employment generator and has strengthened several ancillary industries such as transportation, real estate and catering, security, housekeeping etc. Direct employment in the IT services and BPO/ITeS segment is estimated at 4.47 million with an addition of 1,38,000 people (consisting of nearly 36 per cent women employees). Indirect job creation is estimated to be over 12.0 million.
These numbers might look like gibberish to a common man, but it is important for us to read and understand them to make proper career choices. I would be talking about the same in my upcoming articles on how to understand the job market, make the best possible career choices and become a valuable asset to this nation.
