You are here: Home » Opinion » Columns
Business Standard

Jobs euphoria may be misplaced

Over half of the increase in employment in the organised sector has come through growth of contract workers, survey shows

Job Creation In India

Radhicka Kapoor 

Radhicka Kapoor

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.



What you get on Business Standard Premium?

  • icon Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • icon Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • icon Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
  • icon Pick your 5 favourite companies, get a daily email with all news updates on them.
  • icon 26 years of website archives.
  • icon Preferential invites to Business Standard events.


Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, January 23 2018. 22:42 IST