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India may create 1.6 mln less jobs in 2019-20 fiscal year: bank report

Xinhua News,MUMBAI
2020-01-13 16:08

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MUMBAI, Jan. 13 (Xinhua) -- India may create 1.6 million less jobs as per the payroll in the current fiscal year 2019-20 (April 1-March 31) compared to the previous year, a report by the country's largest state-owned commercial bank said on Monday.

These would include 1.58 million less jobs as per the Employees Provident Fund Organisation data (EPFO) and another 39,000 jobs as per National Pension scheme, said the report of Ecowrap by State Bank of India.

In 2018-19, India created 8.97 million new payrolls as per the EPFO data, which primarily covers low-paid jobs as the salary is capped at 212 U.S. dollars a month. The data does not cover government and private sector jobs, which are now moved to National Pension Scheme (NPS).

However, in the NPS category too, India's state and federal government are likely to end up creating almost 39,000 jobs less during the year under review, which puts the total job loss at 1.6 million, the report said.

Asia's third largest economy slumped to over 6-year low of 5 percent in the April-June quarter and 4.5 percent in the July-September quarter of 2019, which is now visible in job losses.

The report concluded by saying that the job loss data may impact consumption and thereby indirect tax collections in the form of Goods and Service Tax that has been pegged at 15.5 billion U.S. dollars per month.
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