According to the latest government data, new job creation in nine key non-agricultural sectors improved sequentially in the September quarter of FY23, but it remained lower than new job creation during the Omicron-impacted March quarter of FY22.

However, during H1 FY23 (April-September), the number of new hires more than halved to 331,221 compared to 740,415 in H2 FY22.

The Labour Bureau on Tuesday released the results of the fifth and sixth rounds of Quarterly Employment Survey (QES) relating to Q1 and Q2 of FY23 after a gap of nearly 20 months.

In the Omicron-affected quarter (Q4 FY22), new job creation in these nine non-agricultural sectors had declined to 350,299 from 390,116 in Q3 FY22. Job creation declined further to 49,197 in Q1 FY23, before recovering to 282,024 in Q2 FY23.

The last quarter-wise statement relating to Q4 FY22 was released in September 2022. The nine non-agricultural sectors covered under the survey are manufacturing, construction, trade, transport, education, health, accommodation and restaurants, information technology (IT)/business process outsourcing (BPO) and financial services.

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The data showed that the manufacturing sector (1.7 million) added the most number of jobs during H1FY23 as compared to H2FY22.

During the same period, while new jobs were added in financial services (355,631), health (151,378) and trade (76,228), sectors such as education (-1.57 million), transport (-128,099), construction (-118,585), IT/BPO (-98,957) and accommodation and restaurants (-20,262) witnessed a decline in the workforce.

The fifth and sixth rounds of the survey estimated a total of 462,000 units operating across these nine sectors in the country, while the first round had estimated the total to be around 531,000 units.

Reports have revealed that nearly 90 per cent of these establishments were found to be operating with less than 100 workers.

The financial services and education sectors had the highest percentage of establishments with 100 or fewer employees.

Most establishments in the manufacturing and IT/BPO sector – about 96 per cent – ​​were registered under the Goods and Services Tax Act, 2017.

The Labour Bureau had launched the QES in April 2021 to collect employment data from units enumerated in nine non-agricultural sectors in the Sixth Economic Census.

It is part of the All-India Quarterly Establishment-based Employment Survey (AQEES) and covers units employing 10 or more workers.

While the Periodic Labour Force Survey (PLFS) by the Ministry of Statistics provides the employment scenario for the supply side of the labour market through household surveys, the QES provides the demand side picture of the labour market through establishment surveys.

For the fifth and sixth rounds, a sample size of around 15,000 units was selected across the country. And, the list of establishments included establishments covered under the Sixth Economic Census as well as those covered under the Annual Survey of Industries (ASI) 2019-20.

first published: 28 May 2024 | 9:55 PM First


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