Whereas the pandemic has hit the employment alternatives laborious, a brand new examine discovered that even within the pre-pandemic interval, progress in employment lagged far behind the financial progress.
In a report, Care Rankings have discovered that between 2016-17 and 2019-20, headcounts in 2,723 listed corporations elevated by 2.2% compounded annual progress fee (CAGR).
“The attention-grabbing reality right here is that in this era actual GDP progress (CAGR) was 5.8%, which helps the view that progress within the economic system didn’t result in commensurate progress in employment. Increased use of expertise and elevated productiveness could possibly be causes for this deviation and may therefore be attributed to the idea of complete issue productiveness,” the score company mentioned.
Care Rankings have used information from the annual studies of those corporations to reach on the headcount numbers.
“The opposite disturbing signal right here is that the annual progress fee has been coming down from 4% in FY18 to 2.1% in FY19 to 0.6% in FY20. Primarily based on the developments witnessed in FY21, it may be anticipated that there could be degrowth on this yr for sure,” the company mentioned.
In keeping with a current evaluation by the Centre for Financial Information and Evaluation based mostly on the CMIE month-to-month time-series of employment by business, manufacturing employment in 2020-21 was practically half of what it was 5 years in the past.
The decline was notably sharper in 2020-21 owing to the pandemic — on a y-o-y foundation, the sector employed 32% fewer folks in 2020-21 over 2019-20. Actual property & development additionally noticed large fall in its share in employment in 2020-21 and a secular decline over the five-years to 2020-21.
As reported by FE not too long ago, just like the one a yr in the past, the current lock-down additionally has had a direct, telling impact on the employment situation within the nation. The nation’s unemployment fee, that has remained elevated for a couple of weeks, soared to a close to one-year-high of 14.45% within the week ended Could 16.