India added a massive 1.6 crores of jobs in July. However, all the additional employment provided during the month was of “poor quality”, according to private think-tank Centre for Monitoring Indian economy (CMIE). 

During the month, 1.86 crores of additional people were employed as small traders and daily-wage labourers, with most of these engaged in agriculture, where 1.12 crores of additional people were employed. 

However, the number of salaried jobs, which are mostly better quality jobs, fell by 32 lakhs in the month to 7.65 crores, the CMIE has said. The salaried jobs were 36 lakhs short of the pre-second wave level of 8 crores in January-March 2021 and over 1 crore million less than during the pre-pandemic times. 

While the construction sector absorbed additional 54 lakhs of people, the manufacturing sector shed 8 lakhs of jobs during July. The services sector could absorb only an additional 5 lakhs of people. 

According to CMIE MD and CEO Mahesh Vyas, the big jump in employment seen in agriculture in July was a reflection of the increase in sowing activities. As monsoon picked up, Kharif sowing, which was more than 20 per cent lower in June than that in the corresponding period of 2020, improved to less than 5 per cent lower than a year ago.

Mr Vyas added that while employment in July 2021 was down by 2.3 per cent compared to those of the 2019-20 levels, the decline was much larger at 11.7 per cent for salaried jobs. 

He further said that salaried jobs were not as elastic as that of small traders and daily-wage labourers. “It is difficult to retrieve a lost salaried job. As a result, the cumulative impact of the steady loss in salaried jobs during the several lockdowns and their after-effects is much worse.” 

Till investments did not pick up, it might be difficult to see most of the 1 crore salaried jobs lost since 2019-20 coming back, Mr Vyas said, adding that this could be the biggest hurdle to India’s recovery.