India needs to develop credible system for mapping job creation in formal sector: Report
New Delhi, June 11 (KNN) India needs to develop a credible system for mapping job creation, at least in the formal sector, so that government’s policies are governed properly, says a report.
Stressing on the need to bring the system sooner, the industry body ASSOCHAM said, “like we release inflation data, industrial output numbers and several other high frequency data every month, we must create a system sooner than later so that the payroll numbers are released month on month.”
The industry body further pointed that if a large part of the economy is getting formalized, the mapping of the job creation should not be difficult.
Since the wages are all paid through banking channels, we can just capture the salary data from the banks to collate and compare it, it added.
Explaining the need on maintaining monthly job data base, it said that monthly data can make it clear that it is about the fresh jobs in the formal sector.
With measures like the Goods and Services Tax, larger part of the economy have come under the formalization bracket, which will help in maintain and creating the job data base. At least we have to make a beginning somewhere, the industry body said.
The chamber said for any mature economy, the pay roll data is crucial for anchoring policies with regard to interest rates, welfare measures, investment incentives and taxation.
The national economic policies must be data driven rather than narrative pieces of information, collected from here and there, it said.