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The pace of job growth in manufacturing has overtaken that of the services sector, the biggest employer for several decades since the IT boom of the early 2000s, according to an exclusive study by Teamlease Degree Apprenticeship. The growth pace for jobs in manufacturing witnessed a 200% expansion over the past two years (2022 to 2024) compared with a drop of 35% in the services sector.
To be sure, the services sector, including IT and non-IT industries, continues to do the heavy lifting, accounting for the greater number of jobs created in India. Growth in the manufacturing industry has picked up pace, mostly in the last two years, with the introduction of production-linked incentive (PLI) schemes and as companies increase manpower amid capacity expansion plans. Meanwhile, the tech industry has been hit by global economic uncertainty.
The year-on-year growth in the number of direct jobs in manufacturing has taken off from a trough of -27% in 2021 (total 29.83 million jobs) to 5.8% in 2022 (31.57 million jobs), 12.9% in 2023 (35.65 million jobs) and a projected 18.4% (42.2 million jobs) in 2024, according to the data. In contrast, the services sector has slowed, with growth rates dropping from 49.9% in 2021 (21.75 million jobs) to 35.5% in 2022 (29.48
