(NPS) indicates that more than 7.75 lakh new subscribers have joined the NPS during 2023-24 under the Central and State governments which is 30% more than 5.94 lakh new subscribers joining NPS under government sector during 2022-23. This substantial increase in new subscribers highlights the government's proactive measures to fill-up the vacancies in public sector in timely manner.

Flexi-staffing sector 

In a recent interaction of Indian Staffing Federation (ISF) members with Secretary, Ministry of Labour and Employment, ISF members informed that they are employing about 5.4 million formal contract workers. Nearly 30% demand in the sector remains unfulfilled at frontline across manufacturing, retail, banking due to talent shortages and labour mobility.  

Multiple new opportunities 

The future prospects of the employment market in India are highly encouraging, as evidenced by data from various sources. The Global Capability Centers (GCCs) in India have shown remarkable growth in recent years. The gig economy also promises significant increase in workforce in the country. Notably, the NITI Aayog report on gig economy projects a substantial increase in platform workers, which is expected to reach 2.35 crore (23.5 million) by 2029-30, underscoring the rapid expansion of the gig economy. The gig workers are expected to form 6.7% of the non-agricultural workforce or 4.1% of the total livelihood in India by 2029-30. These developments collectively reflect India's robust economic trajectory and its potential to generate diverse employment opportunities.

Data Credibility 

It is well known that the private data sources, which the report/media refers to as more reliable, has several shortcomings. These surveys use their own derived definition of employment – unemployment which is not aligned to either national or international standards. The sample distribution and methodology are often critiqued for not being as robust or representative as official data sources like PLFS. Therefore, reliance on such private data sources over official statistics can lead to misleading conclusions and thus, should be used with caution. 

Further, some authors use data selectively which undermines the credibility of their analysis and does not present an accurate picture of the employment scenario in India. Such reports fail to consider the positive trends and comprehensive data from official sources. 

Summary 

The official data sources like PLFS, RBI, EPFO, etc. show consistent improvements in the key labour market indicators, including increased Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR), and a declining Unemployment Rate during last five years. EPFO and NPS data further support the positive employment trends. The trends in manufacturing, expanding service sector, infrastructure growth, apart from others, including emerging opportunities in multiple sectors such as gig and platform economy and GCCs indicate robust future prospects. 

The Ministry of Labour and Employment emphasizes the credibility and comprehensiveness of official data, cautioning against the selective use of private data sources that can lead to misleading conclusions about India's employment scenario.

The Government remains committed to creating a robust and inclusive job market, and the evidence suggests substantial progress is being made in this direction.

* This report is Co- Authored by Pragya Paliwal Gaur / Himanshu Pathak

-----------------------------Advertisement------------------------------------