The IT sector is experiencing a resurgence in hiring, with an expected 8.5% job role increase by next year, according to an Indeed report. Driven by the demand for software roles, the growth is fueled by emerging technologies like AI and blockchain, as well as the thriving startup ecosystem and Global Capability Centers (GCCs).

The economists' comments follow the release of labour department figures earlier this week, which showed the creation of 20 million new employment opportunities annually since the 2017/18 fiscal year. This figure contrasts with a Citibank report claiming that only 8.8 million jobs were added each year since 2012, according to Reuters.

The Indian MSME sector, which currently employs around 1.2 crore people, is expected to generate over two lakh new jobs by 2025 across various sectors such as e-commerce, logistics, and supply-chain management, according to a report released on Thursday.

India's unincorporated non-agricultural sector saw a 7.8% annual employment increase post-Covid, with significant growth in manufacturing, services, wages, and productivity, according to a Ministry of Statistics survey.

The Finance Ministry's report highlights a decline in unemployment rates alongside a rise in formal employment, attributed to initiatives like Aadhar and portals like Udyam. EPFO data shows a net payroll increase and a trend of rejoining members, indicating a growing formalized labor market.

Recent EPFO data shows a significant employment increase in India's organised sector in March, with a net membership surge of 1.44 million. Notably, 56.83% or approximately 424,000 new members are aged 18-25.

In 2023, South Asia's employment ratio stood at 59%, significantly lower than the 70% observed in other emerging market and developing economy regions. Notably, South Asia is the only region witnessing a decline in the employment of working-age men over the past two decades and exhibits the lowest share of working-age women in employment.

Government officials and industry experts, revealed that a substantial portion of these employees are young, first-time job seekers aged between 19 to 24 years. Moreover, an estimated 300,000 people have benefited from indirect employment opportunities stemming from the Apple ecosystem. 

One of the most striking revelations of the report is the paradoxical improvements in various labour market indicators amidst economic turbulence. Despite the long-term deterioration in the years leading up to 2019, recent years have seen positive shifts in metrics such as the labour force participation rate and unemployment rate. However, beneath these surface improvements lie deeper issues that cannot be overlooked.

The report states, “Youth unemployment rate doubled between 2000 and 2019 [which is before Covid-19], rising from 5.7% to 17.5%, but then dropped to 12.4% in 2022.”

Chief Economic Adviser V Anantha Nageswaran, upon releasing the report, emphasized the need to shift away from the notion that every economic or social issue necessitates government intervention. He stressed the role of the commercial sector in driving employment, stating, "In the normal world, it is the commercial sector, those who engage in for-profit activity, who need to do the hiring."

The survey reveals that organizations in the North of India exhibit the strongest hiring intentions at 40%, followed by the West at 35%, the South at 33%, and the East at 30%. Net employment outlook of stands at 44% for very large organizations, 43% for large organizations, and 40% for large enterprises.