Economy Watch - Assessing India’s Employment Situation: Motilal Oswal
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Motilal Oswal Report
On an aggregate basis, the total number of workers in the listed universe (~3,500 companies) has stood at 6.5 million for the past three years (FY18–20), amounting to under 2% of the country’s total employment.
Furthermore, the share of the IT sector, the largest in the listed space, would be just ~3% (including indirect employment) of the total employment.
Without wage inflation, better employment growth in these sectors is unlikely to have a nationwide impact, unless complemented by some other broad measures.
One of the best and most comprehensive methods to gauge the employment situation in India is to analyse the Mahatma Gandhi National Rural Employment Guarantee scheme. Since MGNREG is a demand driven program, higher (lower) demand under this program is a good indicator of the stress (buoyancy) in the labor market.
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