September 2021 witnessed an increase of 8.5 million in the employment sector, which touched 406.2 million, the highest ever since March 2020. However, the rate remained a little lesser than 406.7 million in August 2019. The employment rate was recorded at 8.6 per cent in August this year, and it significantly fell to 6.86 per cent by September. In the same month last year, the employment rate was slightly higher than last year, which was 6.6 per cent. The Centre surveyed Monitoring Indian Economy (CMIE) under the pyramids household survey.
Labour Force Participation At 40.7%
The survey took over 1.79 lakh households with over 5.22 lakh members above 15 years of age. The labour force participation rose from 40.5 per cent to 40.7 per cent. The labour force participation category identifies the specific proportion of people seeking work or actively working compared to the total eligible working population. Unemployment refers to the number of people ready to work but cannot find work and the total labour force.
The Financial Express quoted CMIE's MD and CEO Mahesh Vyas, "The best part of the increase in employment in September 2021 is the increase in salaried jobs. These increased by 6.9 million from 77.1 million in August to 84.1 million in September." He further added that, of all the major occupation groups, salaried jobs saw the biggest increase. The big jump in September brought salaried jobs closest to their average in 2019-20, which was 86.7 million.
Number of Entrepreneurs Reduced
On the gloomier side, September 2021 recorded only 74.4 million Entrepreneurs, from 76 million in August. Similarly, the number of farmers also fell from 116 million in August to 113.6 million in September. Vyas feels that we could attribute two causes to this fall, some people who had lost salaried jobs and the labour that had moved home to look after their farms had now moved back. Secondly, economic activity could have revived, thus absorbing the daily wage workers.