June 13, 2024

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Manufacturing employment nearly half of what it was five years ago

With the second wave of the coronavirus pandemic battering India at present, the Indian financial outlook looks bleak for the second year in a row. In 2020-21, India’s authentic GDP expansion is believed to be minus 8 per cent. This would also put stress on India’s employment numbers. In past bulletins, we have analysed the influence of Covid-19 pandemic on employment, specific and household incomes and expenses in 2020.

In this CEDA-CMIE Bulletin, we test to choose a more time-term perspective of sector-clever employment in India. We base this on CMIE’s month to month time-sequence of employment by marketplace going again to the year 2016. For this bulletin, we have targeted on 7 sectors – agriculture, mines, manufacturing, authentic estate and building, fiscal companies, non-fiscal companies, and community administrative companies. These sectors make up for 99 per cent of full employment in the place.


Agriculture now employs much more persons than 5 a long time back

In figure 2 and 3 (underneath), we glimpse at four sectors. These are agriculture, fiscal companies, non-fiscal companies, and community administrative companies. Non-fiscal companies exclude community administrative companies and defense companies. Together, these accounted for 69 per cent of full employment in 2016-17 and seventy eight per cent in 2020-21.

The agriculture sector employed one hundred forty five.6 million persons in 2016-17. This increased by four per cent to reach 151.8 million in 2020-21. When it constituted 36 per cent of all employment in 2016-17, the figure rose to forty per cent in 2020-21, underlining the sector’s worth for the Indian economic climate. Employment in agriculture has been on the rise more than the very last two a long time with year-on-year (YoY) expansion premiums of 1.7 per cent in 2019-20 and four.1 per cent in 2020-21.


119.7 million Indians were being employed in the non-fiscal companies in 2016-17 (excluding those in community administrative companies and defense companies) (Determine 3). This range rose by 6.7 per cent to reach 127.7 million in 2020-21. The fiscal companies sector employed five.3 million persons in 2016-17 and this grew by 9 per cent to five.8 million in 2020-21.

Community administrative companies employed 9.8 million persons in 2016-17 but it lessened by 19 per cent to 7.9 million in 2020-21.


Production employment virtually half of what it was 5 a long time back

In figure four, we glimpse at employment in manufacturing, authentic estate & building, and mining sectors. Together these sectors accounted for 30 per cent of all employment in 2016-17 which arrived down to 21 per cent in 2020-21.

Production accounts for virtually 17 per cent of India’s GDP but the sector has seen employment drop sharply in the very last five a long time. From utilizing fifty one million Indians in 2016-17, employment in the sector declined by 46 per cent to reach 27.3 million in 2020-21. This implies the severity of the employment disaster in India predating the pandemic.

On a YoY foundation, it employed 32 per cent much less persons in 2020-21 more than 2019-20. It experienced seen a expansion of 1 per cent (YoY) in 2019-20. This has happened in spite of the Indian government’s force to strengthen manufacturing in the place with the ‘Make in India’ challenge. Below the challenge, India sought to develop an additional one hundred million manufacturing jobs in India by 2022 and to improve manufacturing’s contribution to GDP to 20 per cent by 2025.

In its place of growing employment in the sector, we have seen a sharp drop more than the very last five a long time. When we glimpse carefully at industries that make the manufacturing sector, we locate that this is a secular drop in employment throughout all sub-sectors, apart from chemical industries.

All sub-sectors within manufacturing registered a more time-term drop.

Actual estate and building sector has also seen a sharp dip in employment more than the 5-year time period from 2016-17 to 2020-21. From utilizing 69 million Indians in 2016-17, employment in the sector dipped by 25 per cent to reach fifty three.7 million in 2020-21. The sector saw employment dip by 12 per cent in 2020-21 (YoY) and 2.1 per cent in 2019-20 (YoY). In latest a long time, the sector has been beset by difficulties of inventory pile up, shipping delays and developer failures. This is reflected in the employment numbers. The troubled marketplace has been hit further by the coronavirus pandemic in 2020-21.

Mining marketplace has also seen employment crash by 38 per cent more than the 5-year time period concerning 2016-17 and 2020-21. From utilizing 1.four million persons in 2016-17, the sector employed only .88 million persons in 2020-21. India’s financial slowdown may well be the reason to blame for the drop in employment in the sector. With desire slipping in the metal, electric power and building industries, mining has experienced a hit.


When the authentic estate and building sector drove employment expansion concerning 2004-eleven, it saw a sharp drop concerning 2016-17 and 2020-21. We also see that there has been rarely any supply of expansion in employment in this time period. This is reflected in the 7 per cent drop in total employment in the place from 407 million in 2016-17 to 378 million in 2020-21.

These numbers show that the employment disaster in India predates the pandemic the Covid-19 pandemic has built the jobs plight even much more severe.

This short article was initially printed by CEDA

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