India’s job market witnesses improvement, with most of the sectors restoring a lot of jobs

Published on : Thursday, January 21, 2021

India’s job market is on its path to improvement, with most of the sectors restoring a lot of jobs that were lost due to corona virus pandemic-led countrywide lockdown, giving rise to hopes that the worst time might be over. Lessening the impact of lockdown, most of the sectors, including agriculture, services, real estate and construction, have seen considerable recovery in terms of employment, but jobs have moved from higher labor productivity sector to those with low productivity, said private think-tank CMIE.

“Jobs have moved from those sectors that have higher labour productivity such as manufacturing and also services to those with low productivity such as in agriculture and construction,” said Mahesh Vyas, the CEO of Centre for Monitoring Indian Economy (CMIE).

CMIE said that jobs in the services sector like retail trade, travel and tourism, education and personal non-professional that were hugely affected during the lockdown, witnessed an uptick in employment during December quarter. Although employment in the services sector still remains below pre-COVID levels, there is a slight development from before. The travel and tourism sector, which saw its employment drop by 5.5 million during the severe lockdown of June quarter, employed 20.7 million people in December 2020 quarter, which was 1.3 million more than it did in 2019-20. Other services sectors also witnessed development.

Agriculture, which accounts for about 36 per cent of total employment in India, was the only sector that did not experience any job loss during lockdown.

“The increase in employment in agriculture during the lockdown indicates both, shift in labour from shrinking employment opportunities in non-farm sectors and also, favourable agricultural conditions during the year. This excess labour flow into agriculture shows in the record area sown under the kharif crops of 2020. Acreage under kharif crops increased by 4.8 per cent,” said Vyas.

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