India’s Employment Growth: Disproving the Myth of Jobless Growth
India has experienced remarkable employment growth, with a 36% increase—adding nearly 170 million jobs between 2016-17 and 2022-23. This surge aligns with an average GDP growth rate of over 6.5%, reflecting a strong correlation between economic expansion and job creation.
A report by the Observer Research Foundation titled “Busting the Myth of Jobless Growth” offers evidence countering the long-standing narrative that India's growth lacks employment gains.
Key Insights:
1. Steady Employment Rise:
Data from the RBI’s KLEMS database, supported by EUS and PLFS surveys, indicates a consistent increase in employment since the 1980s. The 2016–2023 period alone saw substantial job creation across sectors.
2. Worker Population Ratio (WPR):
Between 2017 and 2023, the WPR increased by 9 percentage points, or approximately 26%, further weakening claims of widespread joblessness.
3. Consumption-Driven Economy:
India’s economic growth, driven by rising consumption, suggests ongoing employment generation. Increased consumption would be unsustainable without widespread and meaningful employment.
4. Employment Elasticity:
Econometric analysis reveals that from 2017 to 2023, for every 1% growth in value added, employment increased by 1.11%—indicating a strong causal relationship between growth and job creation.
5. Sectoral Analysis:
The labour-capital ratio in the economy stands at 1.11, with the services sector at 1.17. These figures contradict the notion that services are not labour-intensive and affirm that both supply- and demand-side factors support job generation.
Conclusion:
India’s employment trajectory—driven by a dynamic, consumption-led economy—clearly refutes the idea of “jobless growth.” Strong data trends across sectors confirm that job creation has remained a consistent and integral part of the country’s economic development.
BUSINESS STRENGTHS
1. Strong Client Relationships and Customer Satisfaction
Long-standing partnerships with marquee clients such as Cars24 Services Pvt Ltd and Octopolis Technologies Pvt Ltd highlight consistent customer satisfaction. Regular senior management reviews, cross-selling opportunities, and tailored workforce solutions across departments help deepen client engagement and attract new business.
2. Experienced Promoters and Management
Promoters Shraddha Rajpal and Nalini Rajpal bring over a decade of industry experience. Their leadership drives strategic growth, team development, and delivery of effective manpower solutions across diverse sectors.
3. Scalable and Technology-Driven Business Model
A tech-enabled model ensures efficient recruitment operations and economies of scale. The company demonstrates scalable growth through client acquisition, sector diversification, and market expansion.
4. Diversified Industry Coverage
Operations span multiple sectors across India, including Automobile & Aviation, E-commerce, Retail, Food & Beverages, Healthcare, Infrastructure, Logistics, Manufacturing, Technology, and Public Sector Units (PSUs)—ensuring a resilient and varied revenue base.
5. Robust Financial Performance
A strong financial foundation with healthy liquidity and a consistent performance track record ensures the company can meet short-term obligations while supporting long-term growth
BUSINESS STRATEGIES
a) Client Acquisition and Account Expansion
Focus on acquiring new clients and strengthening long-term relationships through customer behavior analysis, trend insights, and consultative engagement.
b) General Staffing for Efficiency and Growth
Volume-driven general staffing services enhance clients’ operational focus, enabling improved efficiency, profitability, and sustainable growth.
c) High-Margin Recruitment Process Outsourcing (RPO)
Customized, project-specific and ongoing recruitment solutions are delivered through a problem-solving approach backed by deep industry expertise.
d) Export of Services via India-Based Talent
Leverage Indian workforce for international operations, offering clients unified vendor support across geographies and cost-effective global delivery.
e) Geographic Expansion
Plans to expand beyond India by addressing rising client demands and entering new regions to enhance market reach, improve client understanding, and strengthen long-term relationships through quality, timely, and competitively priced services.
BUSINESS RISK FACTORS & CONCERNS
1. Industry Concentration Risk
A significant portion of revenue is derived from a limited number of industries. Any downturn in these sectors could negatively impact business operations and financial performance.
2. Client Dependency Risk
Revenue is heavily dependent on a few key clients. Loss of major clients or reduced business from them may adversely affect revenue, profitability, and operational stability.
3. Revenue Volatility
Client contributions to revenue may fluctuate between reporting periods based on contract terms, impacting financial consistency.
4. Geographic Concentration Risk
Operations are concentrated in select Indian states such as Delhi, Uttar Pradesh, Maharashtra, Tamil Nadu, and others. Entry into new geographies may not yield similar profitability, posing expansion-related risks.
Happy Square faces business risks due to reliance on specific industries, a limited client base, revenue concentration, and regional dependency. Any disruption in these areas could impact operational and financial outcomes.
