New Delhi: The government on Monday reacted to Citigroup's forecast that India will struggle to create jobs even at 7% growth, saying the report did not take into account all official data sources.
The Ministry of Labour and Employment said in a press release, “A recent Citigroup research report on employment in India, cited in some print and electronic media, forecasts that India will find it difficult to create adequate employment opportunities even at a growth rate of 7%. It does not take into account comprehensive and positive employment data available from official sources such as the Periodic Labour Force Survey (PLFS) and the KLEMS data of the Reserve Bank of India.”
It said, “Therefore, the Ministry of Labour and Employment strongly refutes such reports which do not analyse all the official data sources available in the public domain.”
what did citigroup say
The Citi report estimates that India will have to create about 12 million jobs annually over the next decade to accommodate new entrants into the labour market.
The report says that with a growth rate of 7%, India will be able to create only 8-9 million jobs every year.
How the Centre responded
Citing PLFS and RBI’s KLEMS data, the labour ministry said from 2017-18 to 2021-22, the Covid years, India created over 80 million jobs, which is equivalent to an average of 20 million jobs every year.
The ministry said it “refutes Citigroup's claim that India is unable to create adequate jobs.”
What does the report say about the quality of jobs in India?
According to the report, the quality of jobs in India remains a matter of concern. The report states that despite agriculture contributing less than 20% to GDP, about 46% of the workforce is employed in this sector.
The manufacturing sector, which represents 11.4% of total employment in 2023, has seen a decline compared to 2018, reflecting the lack of improvement since the pandemic.
'Employment in the formal sector…': Government highlights positive trend
Pointing to the positive trend in growth of employment in the formal sector, the ministry said, “During 2023-24, over 1.3 crore subscribers joined EPFO, which is more than double the 61.12 lakh who joined EPFO during 2018-19. Further, over 6.2 crore net subscribers have joined EPFO during the last six and a half years (from September, 2017 to March, 2024).”
Highlighting the fast-growing gig economy sector, it said, “Gig workers are expected to constitute 6.7% of the non-agricultural workforce in India or 4.1% of total livelihoods by 2029-30.”
The Ministry of Labour and Employment said in a press release, “A recent Citigroup research report on employment in India, cited in some print and electronic media, forecasts that India will find it difficult to create adequate employment opportunities even at a growth rate of 7%. It does not take into account comprehensive and positive employment data available from official sources such as the Periodic Labour Force Survey (PLFS) and the KLEMS data of the Reserve Bank of India.”
It said, “Therefore, the Ministry of Labour and Employment strongly refutes such reports which do not analyse all the official data sources available in the public domain.”
what did citigroup say
The Citi report estimates that India will have to create about 12 million jobs annually over the next decade to accommodate new entrants into the labour market.
The report says that with a growth rate of 7%, India will be able to create only 8-9 million jobs every year.
How the Centre responded
Citing PLFS and RBI’s KLEMS data, the labour ministry said from 2017-18 to 2021-22, the Covid years, India created over 80 million jobs, which is equivalent to an average of 20 million jobs every year.
The ministry said it “refutes Citigroup's claim that India is unable to create adequate jobs.”
What does the report say about the quality of jobs in India?
According to the report, the quality of jobs in India remains a matter of concern. The report states that despite agriculture contributing less than 20% to GDP, about 46% of the workforce is employed in this sector.
The manufacturing sector, which represents 11.4% of total employment in 2023, has seen a decline compared to 2018, reflecting the lack of improvement since the pandemic.
'Employment in the formal sector…': Government highlights positive trend
Pointing to the positive trend in growth of employment in the formal sector, the ministry said, “During 2023-24, over 1.3 crore subscribers joined EPFO, which is more than double the 61.12 lakh who joined EPFO during 2018-19. Further, over 6.2 crore net subscribers have joined EPFO during the last six and a half years (from September, 2017 to March, 2024).”
Highlighting the fast-growing gig economy sector, it said, “Gig workers are expected to constitute 6.7% of the non-agricultural workforce in India or 4.1% of total livelihoods by 2029-30.”