BackJuly job additions were poor quality employment, says CMIE
Job recovery in July was primarily led by agriculture and constriction sector, with 3.2 million salaried jobs during the month despite economic activities picking up
PremiumNEW DELHI: Job additions in July largely comprised poor-quality informal jobs and unless economy recovers these people now absorbed in agriculture work will find it tough to find alternatives.
It is likely that as the kharif sowing season comes to an end, these farm labourers will lose their source of employment. The economy will need to provide adequate alternate sources of employment to them when the season ends, Centre for monitoring Indian Economy (CMIE) has said in a posting on its website.
“In July 2021, while employment in agriculture grew by 11.2 million, employment as farmers grew by only 1.8 million. Employment in agriculture mostly consists of two kinds of occupations farmers and farm labourers. The latter, farm labourers are a part of daily wage labourers. It is this category that seems to have increased dramatically during July," as per the posting.
“Unless the economy grows at a healthy clip, these people will find it difficult to find alternate jobs. In three of the five months of August for which data is available since 2016, the agricultural sector shed, on an average, about 3 million jobs. The absorption of such numbers exiting from agriculture in other sectors would be a challenge given the sluggish pace of economic recovery so far this year," CMIE added.
Last week, Mint reported that job recovery in July was primarily led by agriculture and constriction sector and on the loss of 3.2 million salaried jobs during the month despite economic activities picking up.
The growth of employment in July was therefore mostly among agricultural labourers and construction workers. “This, with due respect to all forms of labour, is poor quality of employment. It is mostly informal and at least in the case of agriculture, very likely temporary in nature," it added.
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