Economists at the country’s largest lender SBI believe that labour market activity will improve in FY22, saying companies are continuing with their hiring plans as the pandemic wanes.
They pointed to payroll data from Employees Provident Fund Organisation and New Pension Scheme, showing an uptick in new additions to support their optimistic view.
“We expect labour market activity to remain better in the current fiscal as companies will continue with their hiring plans to get ahead of the pandemic,” its chief economist Soumya Kanti Ghosh said in a note.
The expectation comes at a time when concerns are being raised about joblessness and the dip in labour participation in the economy coming back to normalcy after the second wave of the pandemic. As per an estimate by the Centre for Monitoring Indian Economy, 15 lakh Indians, including 13 lakh in rural areas alone, lost their jobs in August alone.