New Delhi, October 5 Amid the opposition’s claims of increasing unemployment in the country, the new figures presented by the government are showing the opposite situation. According to the Ministry of Labor and Employment, employment opportunities in the country increased by 36 percent between 2016-17 and 2022-23 and 1.7 crore people got new jobs.
The average growth rate of Gross Domestic Product (GDP) during the same period was 6.5 percent.
According to the ministry, employment data obtained from the Reserve Bank of India’s KLEMS database shows a steady increase in employment since the 1980s.
The ministry said, “India has registered a significant increase in employment in the last few years. The country’s economic progress reflects sustained job creation in key sectors. With a strong democracy, dynamic economy and a culture that celebrates unity in diversity, India’s journey towards becoming a global superpower continues to inspire the world.”
PLFS data from 2017 to 2023 also shows that the worker population ratio (WPR) has increased from 34.7 per cent to 43.7 during this period, showing an increase of about 26 per cent.
The ministry has pointed out that the country’s economic growth is driven by consumption, which is directly linked to employment. An increase in consumption means that employment is being created. At the same time, if employment generation was mainly in low-wage jobs, consumption would have declined.
Estimates show that for every one per cent increase in gross value added (GVA) during the period 2017-23, jobs increased by 1.11 per cent.
“The supply-side argument that services generate fewer jobs is contrary to these observations. Hence, from both the supply and demand sides, the country’s economic trajectory is not headed towards any kind of unemployment,” the ministry stressed.
The country’s economic performance in FY2023-24 reflects strong growth. Real GDP is projected to grow by 8.2 per cent in FY2023-24 as compared to an economic growth rate of seven per cent in FY2022-23.
Further, nominal GDP is seen growing at a rate of 9.6 per cent in FY2023-24 as compared to a growth rate of 14.2 per cent in FY2022-23.
