17.19 cr jobs in 10 years: Employment grows 36% under Modi Govt vs 6% during UPA era, reveals RBI KLEMS data
Recent data from the Reserve Bank of India's (RBI) KLEMS database highlights unprecedented employment growth and productivity gains under the Modi Government, marking a significant departure from trends observed during the UPA era.
FollowRecent data from the Reserve Bank of India's (RBI) KLEMS database highlights unprecedented employment growth and productivity gains under the Modi Government, marking a significant departure from trends observed during the UPA era.
The RBI KLEMS database, which tracks key metrics such as capital, labour, energy, materials, and services in production, provides comprehensive employment estimates for both the public and private sectors.
Between 2004 and 2014, the UPA Government added only 2.9 crore jobs, according to the latest data. However, under the Modi Government, 17.19 crore new jobs were created between 2014 and 2024, including a record 4.6 crore jobs in the last year alone.
Employment Growth Trends
- During the UPA's tenure (2004–2014), employment grew by just 6%.
- Under the Modi Government (2014–2024), employment surged by 36%, showcasing the impact of targeted economic and employment policies.
Sector-Wise Employment Highlights
Insights from the RBI KLEMS database reveal sectoral variations in employment growth:
- Agriculture: Employment declined by 16% between 2004 and 2014 under the UPA but rebounded with 19% growth under the Modi Government (2014–2023).
- Manufacturing: Growth was a modest 6% during the UPA period but accelerated to 15% during the Modi years.
- Services: Employment grew by 25% under the UPA but expanded further by 36% under the Modi Government, reflecting the growing contribution of the services sector to the economy.
Unemployment and Labour Force Trends
India's unemployment rate has seen a sharp decline, falling from 6% in 2017-18 to 3.2% in 2023-24, while the workforce participation rate (WPR) rose from 46.8% to 58.2%.
The Labour Force Participation Rate (LFPR) also improved, growing from 49.8% in 2017-18 to 60.1% in 2023-24.
Youth Employment and Employability
The employability and employment of Indian youth have experienced substantial growth:
- Employability: According to the India Skill Report, the employability of graduates increased from 33.95% in 2013 to 54.81% in 2024, driven by skilling initiatives and education reforms.
- Youth Employment Rate: Employment among youth rose from 31.4% in 2017-18 to 41.7% in 2023-24, while the youth unemployment rate dropped from 17.8% to 10.2% over the same period.
- Formal Job Market: Over 4.7 crore youth (aged 18-28 years) joined the EPFO fold between September 2017 and September 2024, signaling a significant expansion of formal employment opportunities.
The RBI KLEMS framework, which evaluates productivity growth by measuring Total Factor Productivity (TFP) alongside key production inputs, indicates that robust job creation has been complemented by improvements in labour quality and capital composition. These trends highlight the effectiveness of initiatives such as "Make in India," "Skill India," and infrastructure investments in boosting productivity and economic growth.
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