RBI Report Reveals Record Job Growth in FY24: What’s Next?

There is promising news for India’s job market, with a record number of people joining the workforce in the financial year 2023-24. The RBI’s ‘Measuring Productivity at the Industrial Level – India KLEMS Database’, which evaluates five key inputs — capital (K), labour (L), energy (E), materials (M), and services (S) — provides an optimistic outlook for job creation in India. Covering 27 industries and offering estimates at broader sectoral levels, this database offers valuable insights into the Indian economy.

Let’s explore the findings of RBI’s flagship report and their implications for future job opportunities.

Key Findings from the RBI Report

Record Job Additions

According to the RBI report, the Indian economy has added 168 million people to the workforce since FY18. The ratio of employed individuals to the total population increased from 34.7% in FY18 to 44.2% in FY24. By the end of FY24, the total workforce in India reached 643.3 million. The report highlighted FY24 as one of the best-performing years for job creation, with an addition of 46.6 million jobs. The number of jobs grew by 6% in FY24, up from 3.2% in FY23.

Sectoral Employment Trends

Employment levels rose across all age groups and educational levels. The service sector absorbed the majority of the workforce transitioning from agriculture. The data revealed that agriculture employed 42.4% of the total workforce, followed by construction at 12.5%. For the first time, the report included a provisional estimate of productivity for the entire economy based on available data.

Age and Education Dynamics

The report noted an increase in employment across various age groups and educational backgrounds. This broad-based growth suggests a more inclusive job market, accommodating a diverse range of skills and experiences.

Challenges and Future Outlook

Current Job Market Challenges

While the RBI report presents a positive outlook on job growth, other reports suggest challenges remain. According to Citibank data, a 7% growth rate could create 8 to 9 million jobs in India, whereas the country currently needs 11 to 12 million jobs. Additionally, Bloomberg reported challenges such as job quality and a lack of employment in the formal sector.

Addressing Job Quality and Formal Sector Employment

Despite the significant job growth, issues such as job quality and the prevalence of informal sector employment continue to pose challenges. Addressing these concerns is crucial for sustaining long-term economic growth and ensuring that new job opportunities meet high standards.

What’s Next?

The RBI’s KLEM report highlights impressive job growth and provides a comprehensive view of the evolving employment landscape in India. While the positive trends are encouraging, addressing ongoing challenges will be essential for ensuring continued progress and maximising the benefits of India’s growing workforce.

Looking ahead, India’s job market will need to tackle these challenges while maintaining momentum in job creation. Strategic investments in infrastructure, education, and formal sector development will be key to supporting sustained growth and improving job quality.

That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!

This article is for informational purposes only. This is not investment advice. Disclaimer: Teji Mandi Disclaimer