Computer, electronics sectors add highest workers after Covid: ASI data

Experts attribute rise in employment in the electronics industry to high incidence of flexible and temporary workforce

Of the total 29 major industry groups covered in the Annual Survey of Industries (ASI), ‘manufacture of computer, electronic and optical products’ has seen the highest growth in the number of people engaged between the pre-pandemic period (2019-20) and 2022-23.

A Business Standard analysis of the latest ASI results has taken into consideration only industry groups having more than 1,000 operating factories. 

This industry group, which includes manufacture of electronic components, computer equipment, consumer electronics and optical instruments, among others, saw the total number of people engaged rise nearly 50 per cent to 425,000 from 283,000. This was closely followed by ‘manufacturing of furniture’ which saw the number of people engaged increase by 49.5 per cent.

Then, there was ‘other manufacturing’ that includes making jewellery, medical instruments, musical instruments and sports goods. This increased by 27 per cent. 

Experts attribute the rise in employment in the electronics industry to the high incidence of flexible and temporary workforce. This comes as the number of operating factories under this industry group has undergone marginal decline during the period. 

The total number of factories operating under this industry group stood at 2,399 in 2022-23 compared to 2,419 in 2019-20.

“Manufacturing of computers, consumer electronics and optical instruments is a highly distributed production process, with high incidence of contractualisation. As many as 35-40 per cent workers were employed through contractors during 2021-22. Though data for this year isn't available, it is expected to be high,” said a labour economist.

Meanwhile, industries involved in manufacturing ‘other transport equipment’ include building of ships and boats, railway locomotives and military fighting vehicles, among others. They saw the highest decline (-6.2 per cent) in the number of people engaged to 395,000 (in 2022-23) from 421,000 (2019-20). This was followed by industries involved in manufacture of leather products (-4.3 per cent), beverages (-3.8 per cent) and tobacco products (-2.5 per cent).   

The latest ASI data has shown that employment generation by the manufacturing sector picked up in 2022-23 with 1.3 million fresh jobs compared to 1.1 million in 2021-22.

Cumulatively, total persons engaged in the manufacturing sector grew 7.4 per cent in 2022-23 to 18.5 million. 

On the other hand, the total number of factories increased to 253,000 in 2022-23 from 249,000 in 2021-22.

The industry group ‘cotton ginning, cleaning and bailing’ saw the highest decline (-11 per cent) in the number of operating factories during this period. It was followed by ‘motor vehicles trailers’ group (-2.4 per cent).