HYDERABAD: The prevailing economic slowdown is adversely impacting employment as nearly 1.6 million less jobs are projected to be created in FY20 compared to 8.97 million fresh jobs in FY19, according to SBI Research.
“In FY19, India had created 8.97 million new payrolls as per the EPFO data. In FY20, as per current projections, this number could be at least 1.58 million lower,” it said.
EPFO data covers low paid jobs as the salary is capped at Rs 15,000 per month.
As per the report, during April-October 2019, the actual net new payroll stood at 4.31 million, which when annualised will settle at around 7.39 million during FY20. EPFO data doesn’t cover central and state government jobs, and private jobs as they moved to National Pension Scheme (NPS) beginning 2004.
Even in the NPS category, close to 39,000 less jobs are expected to be created in FY20, the report added.
According to the report, there’s a decline in remittances in a few states like Assam and Rajasthan, reflecting downsizing of contractual labourers.
A sample of data on remittances by migrant labourers to selected states in the last year showed that there is a decline in remittances in states like Assam, Bihar, Rajasthan, Odisha and Uttar Pradesh.
“The delay in resolution of cases under bankruptcy proceedings may have prompted companies to downsize their contractual labourers,” it noted.
Migrant remittance skew factored in
Migrants to Delhi, Punjab, Gujarat and Maharashtra send significant amounts of money to their families in their places of origin, unlike those in Assam