Organised sector rides out second wave: Govt

152% job growth in IT-BPO in Q1 over 2013-14; trade, restaurants worst hit

Nine organised non-farm sectors provided jobs to 29 per cent more people during the first quarter of the current financial year, the period hit by the second Covid wave, over 201314, showed a new official employment survey.

However, two services sectors — trade, accommodation and restaurants — were battered by the wave and job generation there declined by 25 per cent and 13 per cent, respectively, over this period, showed a first revamped quarterly employment survey (QES).

On the other hand, the other services sector — IT and BPO — hired 152 per cent more, while it is 77 per cent higher in the case of health. This was followed by transport (68 per cent), financial services (48 per cent), and education (39 per cent), showed the survey unveiled by Labour Minister Bhupender Yadav.

Among industries, employment generated by the construction sector rose by 42 per cent and the manufacturing sector by 22 per cent.

These sectors account for a majority of jobs in the non-farm establishments, said the ministry in a statement.

The findings of the survey could be compared to the sixth economic census, conducted in 2013-14, though not on a one-to-one basis.

One was the normal year and the latest one was the Covidaffected quarter.

Assuming that the growth rate accelerated equally, it would come to be a little over 4 per cent a year.

Pronab Sen, former chief statistician and now the head of the India programme of the International Growth Centre (IGC), was surprised over the findings on jobs in manufacturing. “Manufacturing was affected by both developments (demonetisation and Covidinduced lockdowns). The (QES findings) are bit of a surprise. How is it possible?” said Sen.

However, a huge jump in job generation by IT/BPO and decline in employment in trade and restaurants were expected, he said.

The minister said as the survey was done after April 2021, when the second wave of Covid-19 was at its peak, trading and hospitality saw a decline (in employment generation). However, financial services have grown 48 per cent and seven out nine sectors have registered growth, he added.