Indian factories added jobs for the first time in 15 months

• India’s factories are reopening and that has led to job creation in July 2021, for the first time in 15 months.
• New export orders showed an encouraging jump, according to the survey.
• The Centre for Monitoring Indian Economy, which releases weekly data, had also suggested some improvement in job creation in July.

India’s factories are reopening and that has led to job creation in July 2021, for the first time in 15 months.

The latest manufacturing purchasing manager’s index, compiled by IHS and Markit, shows that factory activity was at its highest in the last three months. This has led to a recovery, a marginal one, in hiring. This was the first time since March 2020 that India’s factories saw a net addition in jobs.


“Output rose at a robust pace, with over one-third of companies noting a monthly expansion in production, amid a rebound in new business and the easing of some local COVID-19 restrictions,” Pollyanna De Lima, Economics Associate Director at IHS Markit and author of the report, said.

New export orders showed an encouraging jump, according to the survey. However, while production resumed, the cost of raw materials rose at a faster pace than the output.

The Centre for Monitoring Indian Economy, which releases weekly data, had also suggested some improvement in job creation in July. “The July 2021 employment rate could end close to the March rate of 37.6 per cent. This is promising,” the report said.


Not just that, the labour participation rate also improved to 41.1% in the week ended July 25 compared to 40% or lower in the preceding three months. There is a greater demand for jobs and most of this demand is being met, the CMIE report had added.

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