Over 5 million Indians lost jobs in October: CMIE
At least 5.46 million Indians working in both formal and informal sectors have lost jobs in October. According to recent monthly employment data from Centre for Monitoring Indian Economy (CMIE), the number of people employed in October was 400.77 million, down from 406.24 million recorded in September.
Both labour force participation rate and employment rate dropped month on month in October when compared to September. While the national labour force participation rate (LFPR) was 40.66 percent in September, it went down to 40.41 percent.
However, on the bright side, the information technology, retail trade and education sector job creation numbers in October have partly offset the overall job cuts. In addition, the number of employed people expanded by over 712,000 in urban India in October over September as economic activities opened up in cities and urban centres.
However rural India posted a significant fall of more than 6 million workers in both formal and informal jobs, CMIE data showed.
When it comes to sectors, while industries have shed almost 7 million people in October as against September, driven by a fall in real estate sector employment, the upward trend in the service sector has been a sign of relief. CMIE data showed that the service sector employment has grown to 154.6 million in October as against 149.22 million in September.
Similarly, the retail trade posted significant growth by adding over 3 million people and personal nonprofessional services segment has added 1.77 million more people in October. Sectors like education, media and publishing sub segments also posted growth in employment. But wholesale trade and financial services sub sectors saw employers trimming workforce in large numbers.
In the manufacturing sector, segments like textiles, automobile and transport manufacturing, chemical industries, metal, gems and jewellery among others posted good job creation numbers. Meanwhile, food industries saw employment loss of over 2 million people in October as compared to September. The trends show that while segments of the jobs market are looking up, driven by festive demand, however the rural sector continues to struggle.