March 9, 2019:

There is an expectations of higher growth on employment for the next three years.

Job creation by the micro, small & medium enterprises (MSMEs) sector saw a growth of 13.9 percent in the past four years, claims an industry survey.

The findings are contrary to the official & other industry data which show that there was massive job losses since the the note-bank & GST implementation in this very sector.

While private sector economic think-tank has found that as many as 13 million jobs were lost in 2018 alone, the official NSSO data show that unemployment rate touched a 46- year high in 2018.

According to a CII survey among over 1 lakh MSMEs, there has been a 13.9 percent increase net jobs additions (or 3,32,394 new jobs created), over the past four years, which is a 3.3 percent increase per annum in these four years.

The survey, that covered 1,05,347 MSMEs of varying sizes, across sectors, located in about 350 industrial centres spread across the country, indicates that micro enterprises were the largest job creators in the past four years & will continue to be so in the next three years.

The put the findings in context, the survey mapped the jobs figures against publicly available macro-level data sourced from the Labour Bureau (for total workforce).

“Given that the total workforce size according to the Labour Bureau is estimated at 450 million, the overall job additions work out to 13.514.9 million per annum,” it said.

The top job generating sectors were hospitality & tourism followed by textiles & apparel & metal products, during the past four years. Machinery parts & transport & logistics were the next significant job creators, it showed.

In terms of states, Maharashtra, Gujarat & Telangana were the largest job creators, while in case of exporters, Maharashtra, Tamil Nadu & Telangana topped.

“There is an expectations of higher growth on employment for the next three years,” the survey said.

This optimism emanates from the fact that government initiatives like the 2 percent interest subvention given to all MSMEs & trade receivables e-discounting system (TReDS) would drive future growth leading to more employment, the report said.

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