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1.5 million jobs lost in first four months of 2017 - All time low data shows

Image courtesy: India Today

A lot of "bhashan baji" but no action by indian govt. India’s unemployment rate has been an issue of rising concern. A more or less healthy growth rate has stopped being accompanied by a proportionately healthy job creation rate. This trend of a “jobless growth rate” has worsened with the decreasing rate of job creation, which job growth in key sectors plummeting to eight-year lows in the past two years.

Coupled with the relentless expansion of India’s labour force and population, the scenario is a grave one and, if not addressed immediately, it could set the stage for prolonged social unrest and economic doldrums.

In its annual household survey conducted by Labour Bureau, it is found that the country’s unemployment rate has risen up to a five-year high of 5% in 2015-16. Joblessness is gripping the Indian economy with each passing year.

The Labour Bureau had earlier measured unemployment stood at 4.9% in 2013-14, 4.7% in 2012-13 and 3.8% in 2011-12.

Among those unemployed, female job seekers are the worst hit as unemployment has sharply climbed to 8.7% , compared to 7.7% in 2013-14, according to the data from the Fifth Annual Employment-Unemployment Survey.

The unemployment rate in rural areas rose to 5.1% in 2015-16 from 4.7% in 2013-14, it declined to 4.9% from 5.5% in urban areas during the same period.

Presently, according to the Labour Bureau, under-employment is at a staggering 35%.

“We should understand, while speaking of unemployment in the Indian context, that our problem is mainly of under-employment and not unemployment … Often you have two to three workers performing a task of one worker. This translates into low productivity and low wages. What we need to do is create high productivity jobs that would also mean creating jobs in the formal sector, especially in labour-intensive manufactures.”
                                                            Arvind Panagariya, Vice Chairman of NITI Aayog:

 “Almost no new jobs have been created under Mr. Modi. In the late Singh years, economists say, at least 400,000 extra jobs were added yearly. In the last three years of Mr. Singh’s government, from 2011 to 2014, on average 579,000 extra jobs were added yearly in India … That was far too few, considering roughly one million people join the labor force every month. But under Mr. Modi the job-creation rate has fallen, in effect, to zero. Data for 2015, the latest year for which they are available, suggest that little more than 100,000 jobs were added to India’s economy."
                                                         Adam Roberts wrote in The New York Times, 

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