US Job Data: The non-farm payroll data is out but with a not-so-optimistic picture. In August, the US economy added fewer jobs than expected, indicating a slowing labor market. This could have a major impact on Federal Reserve's decision on interest rate cuts this month.
While the employment rate stood at 4.2 per cent and remained in-line with the projections, the nonfarm payrolls grew by 142,000 in the month, falling short of industry forecasts.
As for India's employment situation, the picture raises an "it's complicated" banner. According to the Reserve Bank of India's (RBI) latest KLEMS (Capital, Labour, Energy, Materials and Services) data, employment in India rose to 64.33 crore in the fiscal year 2023-24, up from 47.15 crore recorded in 2014-15.
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While the nation's unemployment rate has come down as the Worker Population Ratio (WPR) continues to improve, concerns still loom around the lack of relevant skillset required for job seats to be filled.
With 65 per cent of the population under the age of 35, many young individuals lack relevant skills required for the current job market. For instance, according to the recent Economic Survey released in July, only 51.25 per cent of young individuals are considered employable. This means that nearly half of them aren't ready to enter the workforce as of now.
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The current government has adopted strong policy initiatives keeping in view the current playfield by introducing schemes like Skill India and Pradhan Mantri Kaushal Vikas Yojana (PMKVY), however, the result figures were not very optimistic.
In the recent budget, the government rolled out another new scheme under its Skill India mission, which involved the top 500 companies each taking on 4,000 interns and offering them training.
This could help bridge the skills gap but how well it works will depend on how it’s put into action. As India's economy continues to grow at pace with the developed nation status set for 2047, it's important not to ignore the employment play.
