Bombay: Employment increased by 8.5 million in September, led by the salaried employment category, as the unemployment rate fell to 6.9% during the month, the Monitoring Center of Mumbai said on Friday. Indian Economy (CMIE).
“Jobs increased by 8.5 million during the month. The unemployment rate fell from 8.3% in August to 6.9% in September, the highest in 20 months or since the Covid-19 shock in March 2020, “said Mahesh Vyas, Managing Director and CEO of CMIE. said in his analysis.
The participation rate rose from 40.5 percent to 40.7 percent and the employment rate fell from 37.2 percent to 37.9 percent.
The best part of the increase in employment in September was the increase in salaried jobs, the analysis notes, adding that these increased by 6.9 million.
Employment in salaried jobs increased to 84.1 million in September from 77.1 million in August.
“Of all the major occupational groups, salaried jobs have seen the greatest increase. This big jump in September brings salaried jobs closer to their 2019-2020 average, which was 86.7 million.
Employment among day laborers and small traders also increased by 5.5 million, from 128.4 million in August to 134 million in September. With this, employment as day laborers or small traders crossed the pre-pandemic level of 130.5 million in 2019-2020, ”Vyas said.
The number of farm jobs fell from 116 million in August to 113.6 million in September, implying that some non-farm jobs that had previously been lost have been revived.
“This probably happened because we are seeing a big increase in employment in the construction industry in October. Employment in this industry jumped 5.5 million in September. Part of it could be a migration of workers. farmers to construction sites, ”Vyas said. observed.
Employment in manufacturing industries increased by 2.9 million. The largest portion (around 2.5 million) was in the food industries, according to the analysis.
“This lends credence to our assumption that some farmers have repaired their old salaried jobs, possibly in the food processing industries,” Vyas added.
However, said Vyas, employment in the IT sector grew from 3.3 million in 2017-18 to 2.3 million in 2018-19 and then to 1.8 million in 2019-2020.
Employment edged up to 2 million in May-June, but was down again to around 1.8 million in September.
Likewise, reports on the gradual opening up of the education sector have not shown much effect on employment in the sector either.
Education employs 10 million people, but this is still far below the nearly 15 million it employed in 2019-2020, he said.
The education sector could generate the largest increase in employment once the sector opens up, Vyas added.