In an exclusive
interview with ANI, International Monetary Fund or IMF Executive Director and Indian
Government’s Former Chief Economic Advisor KV Subramanian highlighted the
positive impact of Bharat’s GDP growth on the country’s employment landscape.
Subramanian
emphasized that the reliable data from the Periodic Labour Force Survey (PLFS)
clearly indicates significant improvements in both the quantity and quality of
employment in Bharat.
Subramanian said, “During
the lockdown and during the second wave, the employment situation did worsen
and this is something that is very clearly shown in the PLFS data which further
enhances the trustworthiness of the PLFS data but if you look at overall now,
the employment situation has improved significantly and has become better
compared to pre Covid levels”.
According to
Subramanian, the PLFS data reveals a substantial increase in the number of
regular employees and salaried workers, rising from 11.5 crores in 2017-18 to
13 crores, marking a 13 per cent improvement.
This positive
trend was notable among females, with a 29.4 per cent increase, and among
males, showing an 8.8 per cent rise. Formal employment also witnessed a boost,
increasing by 1.2 crores or 25.3 per cent.
Furthermore,
Subramanian pointed out that the unemployment rate (UR) in usual status
decreased from 6.0 per cent to 4.8 per cent between 2017-18 and 2019-20. The
Labour Force Participation Rate (LFPR) increased from 49.8 per cent to 53.5 per
cent, and the worker-population ratio (WPR) rose from 46.8 per cent to 50.9 per
cent.
These improvements
were observed across rural and urban areas, as well as among both males and
females.
Highlighting the
recent trends, Subramanian noted that formal sector employment increased from
5.9 crores in 2019-20 to 6.3 crores in 2022-23, showcasing a continued positive
trajectory in the employment sector.
He emphasized that
the data clearly indicates an increase in both the quantity and quality of
employment in Bharat.
Subramanian said, “If
you look at the formal sector employment it has increased from 5.9 crores in
2019-20 to 6.3 crores in 2022-23. This is clearly illustrative of the quality
of employment increasing if you look at the quantity of employment and these
are measured using the unemployment ratio, the labour force participation rate
and the worker-population ratio”.
He added, “It’s
very clear you know, the quantity of employment has also improved significantly
with the employment rate with the unemployment rate being a five-year low at
3.2 per cent. The Labour Force Participation ratio (LFPR) increased from about
50 per cent as of 2017-18 to about 58 per cent in 2022-23 and the worker
population ratio also registered similar significant increases”.
Subramanian also
addressed concerns raised by the Centre for Monitoring Indian Economy (CMIE)
data, stating that he does not trust the reliability of CMIE’s statistics.
He emphasized that
careful examination of the methodologies used in PLFS and CMIE data comparison
demonstrates the discrepancy between the two sources, with PLFS data reflecting
the actual employment scenario in the country.
Moreover,
Subramanian stressed the correlation between GDP growth and employment, citing
evidence from PLFS data.
He emphasized that
as GDP growth improves, employment growth also experiences a positive surge,
illustrating the interconnectedness of economic growth and employment
opportunities in Bharat.
Subramanian said, “We
have very carefully examined the methodology and shown that the CMIE data is
not reliable and therefore, any of the previous statistics on employment that
CMIE released even this statistic is completely at variance with what the PLFS
data is showing.
There is a lot of
evidence for Bharat and the rest of the world that when the GDP growth
improves, employment growth also improves and employment and GDP growth go hand
in hand. And this is something that is found in the PLFS data. But in contrast
in the CMIE data, it is exactly the opposite”.
In conclusion,
Subramanian’s insights shed light on the substantial progress made in Bharat’s employment
sector, highlighting the nation’s resilience and recovery, even in the face of
challenges such as the Covid pandemic.
The data presented
by Subramanian reinforces the importance of reliable sources like PLFS in
accurately gauging the employment landscape, providing valuable insights for
policymakers and economists alike.
ANI
