Employment Trends in the Manufacturing Sector: A Detailed Analysis
Overview of Employment Growth
Employment in the manufacturing sector has accelerated significantly, with annual growth reaching 1.6% between FY14 and FY23. This rate surpasses the previous decade's 0.7% growth. Data from the Reserve Bank of India (RBI) indicates a doubling of job creation due to various factors, despite a slowdown in output growth during the NDA years.
Key Insights from KLEMS Data
The KLEMS database highlights shifts in employment across different industries:
- Chemical and Chemical Products: This sector saw the fastest employment growth at 4.26% annually.
- Woods and Wood Products: Continued contraction, reflecting ongoing trends.
- Electrical and Optical Equipment: Job growth declined to 3.9% compared to the previous decade's 10.1%.
Concerns About Labor Share
Despite the rising employment figures, concerns about labor conditions persist. The labor share of output has increased, indicating better compensation for workers between FY14 and FY23.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.