Indian Economy Sees Surge With 46.6 Million New Jobs In 2023-24: RBI Report

The Indian economy witnessed a significant upturn in employment during the financial year 2023-24, with as many as 46.6 million new jobs created, according to recent data released by the Reserve Bank of India (RBI).

This surge marks a substantial increase from the 20 million jobs created annually between 2017-18 and 2021-22.

The total number of employed individuals in the country rose from 596.7 million in the previous fiscal year to 643.3 million by 31 March 2024, indicating robust growth in job opportunities across various sectors.

The RBI’s KLEMS database, which covers key inputs of production including Capital, Labour, Energy, Materials, and Services, aggregates data from 27 industries grouped into six sectors that encompass the entire economy.

For the first time, the RBI has also provided a provisional estimate of productivity for the entire economy in FY24, emphasizing the quality of labour based on education levels.

The data reveals an increase in employment across different education levels and age groups, with the unemployment ratio declining to 1.4 percent in FY24 from 2.2 percent in FY18.

Notably, the services sector, excluding construction, has emerged as the primary absorber of the workforce transitioning out of agriculture.

This marks a shift from previous decades when the construction sector played a pivotal role in job creation.

The report highlights a trend towards high-skilled activities such as financial and business services, education, and healthcare, which are increasingly employing educated workers.

This shift underscores the evolving composition of the Indian workforce towards more knowledge-intensive sectors.

The RBI’s comprehensive data offers insights into the dynamic changes underway in India’s employment landscape, reflecting both quantitative growth and qualitative shifts in the nature of jobs being created across the economy.

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