Analysing hiring trends, the finance ministry’s report noted that there was a 7% decline in job opportunities in September 2024 compared to the same month last year.
The growing deployment of artificial intelligence (AI) tools in several sectors is casting a shadow over employment stability in India, the Department of Economic Affairs under the Union finance ministry said in its monthly economic review.
“Anecdotal reports of the deployment of Artificial Intelligence displacing workers are beginning to emerge. That needs watching,” said the report for September.
The Economic Survey 2023-24, tabled in Parliament in July, had also flagged concerns of companies turning to AI tools to replace human talent. “While AI has considerable potential for boosting productivity, it also has the potential to disrupt employment in certain sectors,” the survey had said.
The survey had posited that routine tasks, including customer service, would likely witness a high degree of automation while creative sectors would see extensive usage of AI tools for image and video creation. It called for political decisions to ensure the technology benefits everyone rather than creating disruptions across the board.
Analysing hiring trends, the finance ministry’s report noted that there was a 7% decline in job opportunities in September 2024 compared to the same month last year. It said the Naukri JobSpeak index witnessed an annual growth of 6% in September 2024, driven by a resurgent IT sector.
“Sectors such as FMCG and Oil & Gas also underwent significant growth and continued ascent in Artificial Intelligence/Machine Learning roles. However, hiring trends were largely favourable for experience-holders, while professionals with 0-3 years of experience saw a 7 per cent decline in job opportunities vis-a-vis September 2023,” it said.
The monthly economic review said the share of self-employed continued to rise in 2023-24 while the proportion of casual labour workers fell, in line with the recent trend.