The discourse on India’s inability to create productive formal jobs for its rapidly rising young workforce has been injected with positivity after a recent study Towards a Payroll Reporting in India (Pulak Ghosh, professor, Indian Institute of Management, Bangalore, and Soumya Kanti Ghosh, group chief economic advisor, State Bank of India) suggested that 590,000 jobs are being created every month. Combining enrolment numbers from multiple administrative datasets — the Employees’ Provident Fund Organisation (EPFO), the Employees’ State Insurance Corporation and National Pension System — for the time period up to November 2017, the study extrapolates that seven million jobs will be added by the end of the current fiscal year (March 2018). The use of administrative databases to arrive at employment estimates and gauge the extent of formalisation in the absence of real-time employment data is indeed a pertinent exercise. However, it is also an exercise fraught with challenges and there is need for caution in interpreting results thrown up by these databases.
TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.
Already a premium subscriber? LOGIN NOW
SUBSCRIBE TO INSIGHTS
What you get on Business Standard Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- 26 years of website archives.
- Preferential invites to Business Standard events.