Just over 1 lakh jobs were added between April 1 and October 1 last year in eight key non-farm sectors of the economy ranging from manufacturing and construction to IT BPO, education and health, according to a recent government report.
Considering that these eight sectors together employ over 2crore workers, the net addition of new jobs amounts to a mere half a per cent of the total. So, it's bad news for the economy and another red flag for the government.
The third quarterly employment report, which was revamped by the government last year with new sectors included and a larger sample size of over 10,000 establishments. The first report, released last year, set the baseline of employment as on April 2016.The report shows that employment is not only inching up at a painfully slow pace but also that aggregate figures hide more severe upheavals. For instance, almost three quarters of 1.09 lakh new jobs added are confined to two sectors -education and health, which added 82,000 new jobs. But the most worrying thing is manufacturing jobs grew by just 12,000 in six months -a rise of 0.1%. This sector, the backbone of the non-farm economy , employs nearly 50% of workers in the selected eight sectors.
It has been the focus of the `Make in India' and `Skill India' programmes, as also of efforts to woo FDI. The Index of Industrial Production (IIP), released monthly by the government, confirms this dire situation with a rise of a only 1% between January 2015 and January 2017.
According to latest data from the RBI, gross bank credit to industries increasing by a mere 0.3%. This includes credit disbursals to micro, small, medium and large industries and together makes up nearly 40% of all non-food credit.
The meagre increase in credit to industry is a symptom of the flagging growth in manufacturing, which is also reflected in lack of job growth.
National income and expenditure released by the government last month.
Growth in investment in fixed capital, known as gross fixed capital formation, dipped by a factor of 10 between 2015-16 and 2016-17, from 6.1% to a shocking 0.6% in 2016-17.
This implies that the corporate sector is not investing in new production arrangements.
In India lack of job growth in recent year. Opportunities are less and employee number are high.
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