Unemployment in India to witness marginal increase: ILO

In a 2017 World Employment and Social Outlook report released by the United Nations International Labour Organisation (ILO) on last Thursday, unemployment in India is projected to witness marginal increase from 17.7 million last year to 17.8 million in 2017 and 18 million next year. In percentage terms, unemployment rate will remain at 3.4 per cent in 2017-18, signalling stagnation in job creation in the country. It finds economic growth trends lagging behind employment needs and predicts both rising unemployment and worsening social inequality throughout 2017.

India had performed slightly well in terms of job creation in 2016, when a “majority” of the 13.4 million new employment created in Southern Asia happened in the country. India’s 7.6 per cent growth in 2016 helped Southern Asia achieve 6.8 per cent growth that year, the report mentioned.

BJP-led government which has taken a series of steps such as ‘Make in India’ to create jobs for inclusive growth in the country did not do much for people after his government came in power in 2014. The situation of unemployment got even worse when PM announced demonetisation on November 8.

According to the fifth annual employment-unemployment survey at all-India level, about 77 per cent of the households were reported to be having no regular wage/salaried person. It said the unemployment rate was estimated to be 5 per cent at all-India level under the UPS (Usual Principal Status) approach in 2015-16. The figure were significantly higher at 8.7 per cent for women as compared to 4.3 per cent for men, said a report by Labour Bureau. Unemployment rate was 4.9 per cent in 2013-14, 4.7 per cent (2012-13), 3.8 per cent (2011-12) and 9.3 per cent (2009-10). Labour Bureau did not bring out any such report for 2014-15.

In rural sector, unemployment rate was 5.1 per cent whereas in urban sector, the rate was 4.9 per cent under the UPS approach,” the report said. The figure was significantly higher among females compared to males. Female unemployment rate was estimated to be 8.7 per cent, whereas for males it was 4.3 per cent.

The economic crisis has accentuated in the rural areas with the demonetisation as despite all talks of supplying notes to the rural banks, the situation is grave and the cash based trade in the rural areas, has collapsed. Economists mention that the impact of the demonetisation on the rural sector will last for more months and the Prime Minister’s programme of building with big speed a Cashless India, will also hit for the time being the employment in rural areas.

In urban areas, female unemployment rate was estimated to be 12.1 per cent at pan-India level compared to 3.3 per cent for males and 10.3 per cent for transgender. The survey was conducted across all states and union territories during April 2015 to December 2015. A total sample of 1,56,563 households were covered in the survey – 88,783 households in the rural sector and 67,780 in the urban sector.

Topping the chart among the states and union territories was Tripura (19.7 per cent) followed by Sikkim (18.1 per cent), Lakshadweep (16.1 per cent), Andaman & Nicobar Islands (12.7 per cent), Kerala (12.5 per cent) and Himachal Pradesh (10.6 per cent)


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