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The Economy Observer: Employment grew 2.03 % in FY17

  • As against a total addition of 231,000  jobs  in  three  first  three  quarters  of  FY17,  eight  selected  sectors  that constitute~81% of the total employment of units with 10 or more workers, added 185,000 jobs in 4QFY17. In  total,  employment increased from 20.52m at FY16-end to 20.94m at FY17-end,  implying a growth of 2%.
  • With  real  non-farm GVA  growth (excluding  public  administration  &  defense)  of ~6% in  FY17, employment  elasticity turns out to be ~0.33x, lower than the average of 0.46x in the recent decade (ending FY15).
  • Within  FY17,  while  employment - according  to  Labor  Bureau's  quarterly  employment  survey  (QES) - increased  only109,000  (equivalent  to 1.5m  annualized)  in  1HFY17,   the  pace  of  employment  gains  almost  trebled  to  307,000  (=4.1mannualized)  in  2HFY17.  It  implies  that  employment  growth  trebled  from  1.1%  annualized  in  1HFY17  to  3%  in  2HFY17.Demonetization, thus, failed to hurt employment generation in the economy