Skill, workforce, talent for MSMEs: Personnel expenses for more than 2,000 publicly listed companies, including small and medium-sized enterprises (SMEs) and others, increased in fiscal year 2021-22 compared to fiscal year 21, when personnel expenses staff had decreased in all other types of enterprises, except for large enterprises with turnover above 1,000 rupees. crore, according to the latest Ecowrap report from the Economic Research Department of the State Bank of India. “This turnaround indicates that companies were hiring in FY22,” said the report authored by Soumya Kanti Ghosh, the group’s chief economic adviser, SBI.
Growth in employee spending was highest at 22% for 222 businesses with revenue between Rs 100 crore and Rs 250 crore in FY22. 670 very small businesses with revenue up to Rs 50 crore and 164 other small businesses with turnover between Rs 50 crore and Rs 100 crore saw 2% and 15% growth in employee spending respectively in FY22, according to the report launched on Friday.
As for large companies, 200 companies (Rs 250 crore – Rs 500 crore turnover), 199 companies (Rs 500 crore – Rs 1,000 crore turnover) and 567 companies (over Rs 1 000 crore in revenue) had recorded 19 percent, 15 percent and 12 percent growth respectively in the year compared to FY21.
The data was part of observations of India’s FY22 payroll data which showed that India’s labor market, despite massive disruptions in FY21 and FY22 amid Covid , didn’t hurt that badly. A total of 146 lakhs in payroll, including 138.2 lakhs through the EPFO (Employee’s Provident Fund Organization) and 7.8 lakhs through the National Pension Scheme (NPS), was created, compared to 94.7 lakhs during exercise 21.
Subscribe now to the Financial Express SME newsletter: your weekly dose of news, views and updates from the world of micro, small and medium enterprises
In terms of increase, 45 lakh payrolls were added in FY22 compared to FY21. There was an increase from the first payroll of 16 lakhs, from the second payroll of 25.8 lakhs and formalization of 1.9 lakhs, according to the report. This clearly indicates that people were returning to the labor market in the latter part of FY22, as the situation had improved by then, the report added.
The rate of formalization also increased by 1.9 lakhs, reflecting that disruptions in the MSME space were rounding the corner, the report further notes. The MSME sector, according to government data, employs about 11 crore people while an additional 5 crore jobs are targeted by 2025.