It is not good news for Modi government which came into power with the promise of generating jobs and to reduce unemployment. The latest data released by Centre for Monitoring Indian Economy (CMIE) showed that Indian economy sheds 10 million jobs in 2018. The unemployment rose to 27 months high at 7.38%. These figures are not what PM Modi wants to see at the end of his term.
The majority of job losses occurred in rural areas which are already suffering from agricultural crisis. The 91 million jobs (83%) out of total 10 million jobs lost were lost in rural In India. BJP is already facing anger and discontent in the rural areas as young people finding it hard to get jobs.
There was 407.8 million people working in December 2017 but this number fell to 396.90 million in December 2018. More than 10 million jobs lost in last 12 months as the economy slowed down. It’s a bad news for Modi led BJP government who is facing tough challenge from Congress and other regional opponents. The general election is just four months away and there is very little time left for the Modi government to improve the economic situation.
The unemployment rate in December 2018 rose to 7.38% from 6.62% in November 2018 and 4.78% in December 2017, highest since September 2016 when it stood at a high of 8.46%. Alongside the increase in the unemployment rate, there has also been a decline in the labour participation rate (LPR), the data noted.
In December 2017, a total of 269.4 million people were employed in rural parts of the country, which dropped to 263 million in the month of December 2018. Remaining 1.8 million were lost in urban parts of the country with the overall numbers of employed declining to 136.6 million from 138.4 million. The rural India is losing jobs at faster pace compare to the urban India.
The rising unemployment and job losses are the main reasons of BJP’s heavy defeats in five states recently. The BJP has lost considerable support among the sections of rural population.
According to CMIE data, there has been a decline in the estimated LPR— the proportion of working-age people who are willing to work and are either actually working or are actively looking for work, in line with a fall in the unemployment rate.
Meanwhile, the estimated labour participation rate also dropped from 43.57 in December 2017 to 42.47 in December 2018. The rate was at 45.15 in December 2016 and at 47.84 in September 2017, the data showed.
Your email address will not be published. Required fields are marked *
19 January, 2019