Thursday, October 4, 2018

Unemployment Rate at Peak in India - Report

A recent report released by the Centre for sustainable employment has revealed that employment India today is at its peak considering the statistics of the past 20 years. There is not only a shortage of jobs but the wages are also depressed. The state of working India 2018 (SWI) report says that unemployment in India in youth stands at a staggering 16%, viz. highest in the past 20 years.

The report that is written by a group of journalists, researchers, civic society activists and policy makers has also highlighted the fact that the rise in GDP of the country hasn’t affected or caused any increase in employment. The increase ratios is only 1% increase in employment against 10% increase in GDP. 
Earlier, the problem was a bit different. India had the problem of underemployment as well as low wages.  But the recent reports reveal that its unemployment big time that has cropped up to a staggering five percent. The economy looking good either with petrol prices touching the 100 rupees mark and the rupee losing its weight against the dollar and crossing the rupees 70 mark. Additionally education over the past decade has got its dues and as the school admission rates have increased but the job market hasn’t got any spurt as such. Even the quality of education before and now has changed drastically and rather negatively. It is a serious issue and needs to be looked into. 

A study around the employment scenario highlights the fact that growth and employment relationship has gone weak over the period of years. It also focuses on the low earnings. As per a report of 2015, 67% of Indian household had an income of around 10K. Comparatively as per the 7th Pay commission, the minimum salary recommended comes to 18K. This means that it’s below standard. Also, in unorganized sectors 90% industries pay wages below the minimum CPC. 

Presently the GDP is 7% but employment growth is 1% or less while comparatively in the 1970’s and 1980’s GDP was only 3% but employment growth was 2% per annum. Well, its time India looks into the unemployment issues in India and works out reforms to change the present scenario. 

*Sourced from the Internet