Ministry rebuts claims by Citi report on India’s job prospects
The Ministry of Labour and Employment has refuted a recent analysis by Citigroup that predicted India may struggle to generate enough employment despite high GDP growth. In an official statement, the Ministry argued the Citi report failed to consider robust data from credible domestic sources that paint a more positive picture.
Citing labor force surveys and employment metrics compiled by the Reserve Bank of India, the Ministry said over 8 crore new jobs were created in the five year period between 2017-18 and 2021-22. This equals an average of more than 2 crore jobs per year, contradicting concerns raised in the Citi report. The statement also noted EPFO records show 6.2 crore net new subscribers joining between September 2017 to March 2024.
According to the Ministry, the Citi analysis overlooked comprehensive employment indicators readily available from trusted domestic sources such as the Periodic Labor Force Survey and RBI’s KLEMS dataset. Private surveys used different definitions of employment and unemployment than national standards, it said, and had smaller, less representative samples than official statistics. Relying solely on such private reports could therefore lead to misleading conclusions that do not align with ground realities.
While the Citi report highlighted issues like low formalization and rural-urban job migration, the Ministry argued it failed to account for positive trends evident in formal employment and wage data sources. Official data, it stated, presents a fuller picture of the robust job market in India and dispels doubts about the ability to meet future demands even at high GDP growth levels.
