The Centre for Monitoring Indian Economy (CMIE) has said that India witnessed an addition of 16 million jobs in July mainly in the agriculture and construction sectors, however, the number of salaried jobs fell by 3.2 million in the same month. CMIE's MD and CEO Mahesh Vyas in his analysis said ‘India saw an addition of a massive 16 million jobs in July 2021. But, all the additional employment provided by India in July was of poor quality. 18.6 million additional people were employed as small traders and daily wage labourers’. He said most of these were engaged in agriculture where 11.2 million additional people were employed. The number of salaried jobs, which are mostly better quality jobs, fell by 3.2 million in the same month.
Vyas observed ‘The big jump in employment seen in agriculture in July is a reflection of the increase in sowing activities. Monsoon has been playing truant this year. This has delayed kharif sowing activities. By the end of June 2021, kharif sowing was more than 20 per cent lower than it was in the corresponding period of 2020’. He noted by the end of July, the sowing was less than 5 per cent lower than a year ago, that is 65.3 million hectares were sown during July compared to 19.5 million hectares in June. He pointed out this could be the reason why the sharp increase in employment in agriculture is seen. Vyas further noted that employment in agriculture usually rises in July and this seems to be a seasonal pattern.
He added ‘Often, the increase begins in June, peaks in July and sometimes remains elevated in August. This is the kharif time of sowing and post-sowing agricultural activities. Employment then rises again in November during the kharif harvesting season. Agriculture absorbs an additional 8-12 million persons in the month of July. In this year, the absorption in July was on the higher side at 11.2 million’. This seasonal absorption of labour into agricultural activities is different from the large-scale migration of labour into agriculture as farmers. He explained that this happens when other sources of employment start drying up as witnessed in 2020 during the pandemic and the rise of employment in the form of farmers seen in 2020 was mostly disguised unemployment.
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