NEW DELHI: In an interesting trend in employment, there has been a big shift from agriculture to industry and services in the past two months. In April, employment in agriculture fell by 5.2 million. But, the industry added 5.5 million and services added 6.7 million, as per the Centre for Monitoring Indian Economy (CMIE).
As a result, net employment increased by 7 million in April. In May also, agriculture shed nearly 9.6 million jobs. At the same time, Managing Director and CEO of CMIE Mahesh Vyas in his analysis says the industry absorbed 10 million and services another half a million.
“Net employment, therefore, increased this time by a relatively modest 1 million,” he said. Cumulatively, Vyas adds, over April and May of 2022, agriculture shed 14.7 million jobs. Industry provided 15.6 million jobs and services provided another 7.2 million jobs and as a result, approximately 8 million net additional jobs were created in the past two months.
“Industry and services harness labour more productively than agriculture and therefore there is reason to cheer this recent transition,” he said. The analysis notes that within the industry, the absorption of additional labour is slightly in favour of the manufacturing industries compared to the construction sector.
According to CMIE data, In 2021-22, manufacturing accounted for 32% of all employment in industry and construction accounted for another 65% with the rest absorbed by utilities. “Of the incremental jobs in the industry during April and May 2022, 34% to manufacturing and 65% went to construction.”