McKinsey report says 7 million jobs created in 5 years

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A report published by McKinsey Global Institute said 33 million jobs were created in the non-farm sector between 2010-11 and 2014-15 the labour market in India is undergoing a structural transformation. This implies that roughly eight million jobs were created on average each year, said the report.

The report quoted by Business Standard said with farm employment falling by 26 mn over the same period, the net addition to work force over the entire four year period was a mere 7 million. Overall employment rose from 456 mn to 463 mn over the period.

McKinsey report says 7 million jobs created in 5 years

At the aggregate level, the rise in non-farm jobs is simply not enough to absorb the millions entering the labour force each year.

"At any rate, the movement of workers from farm to non-farm jobs has not been rapid enough to account for growth in the working-age population," the report added.

Surveys carried out by the National Sample Survey Office as and the labour bureau are being used to estimate the employment.

During FY11 and FY12 when economic growth slowed down only 11 mn jobs being created. But, subsequently, 22 mn jobs being created over the next two years with the rise in the economy. Most of these jobs were created in sectors such as trade and hospitality, construction and transportation, while sectors such as mining and manufacturing saw declines.

In the initial years of economic slowdown overall labour force participation rate was actually down from 55.4 per cent in 2011 to 52.4 percent in 2015.

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