RBI Report: India’s Employment Growth at 6% in FY24 vs 3.2% in FY23

India’s employment growth provisionally rose to 6% in FY24 compared to 3.2% in FY23, according to the Reserve Bank of India (RBI). This increase brought the total employment to 643.3 million, up from 596.7 million the previous year, with 46.7 million jobs created.

Detailed Findings

Employment Growth: The employment growth rate was 6% in FY24, a significant rise from 3.2% in FY23.

Total Employment: Total employment in India reached 643.3 million by March 2024.

Jobs Created: A provisional 46.7 million jobs were created in FY24.

Data Source: The RBI report uses data from the National Accounts and Ministry of Labour.

Context and Comparisons

Citibank Report

A recent Citibank report indicated that 7% GDP growth might only create 8-9 million jobs annually, falling short of the 11-12 million needed.

Labour Department Statement

The federal labour department countered Citi’s report, claiming an average of over 20 million employment opportunities were created annually between 2017-18 and 2021-22.

Broader Implications

Political Impact

Job creation remains a sensitive issue for Prime Minister Narendra Modi’s government, affecting electoral outcomes.

Unemployment Rate

Despite the reported job creation, the Centre for Monitoring Indian Economy estimated the unemployment rate rose to 8% in FY24, from 7.5% and 7.7% in the preceding two years.

New Initiatives

Provisional Estimates

For the first time, the RBI attempted a provisional estimate of productivity for the entire economy for FY24, based on available information.