India is the second largest country by population, and this has a significant impact on the employment opportunities in the country. The unemployment rate in India is rising every year depicts the data released by the Centre for Monitoring Indian Economy (CMIE). Unemployment has become one of the revolving issues the nation is ardently trying to combat. This is really a major turmoil of job seekers in India. The richly populated nation is stumbling with the bubble of unemployment.
According to the latest CMIE data, the present rate of unemployment in India is about 7.2% in February 2019, the highest ever since September 2016. Exactly a year back, in February 2018, the unemployment rate in India was hovering just 5.9%. In the last 12 months, the number of employed people in India slipped down to 400 million from 406 million in February 2018.
In the last few years, unemployment in India is rising at a concerning rate. According to Trading Economics Data, India witnessed a sudden jump in the unemployment rate in 2018, from just 3.52% in 2017.
As the number of employed people in India is on a constant decline with each passing year, the concerns about rising unemployment in India is becoming more grave. Between February 2017 and February 2019, the number of employed people declined to 400 million from 407 million.
It is, however, not the first time when the rising unemployment rate in India has attracted the eyeballs. In 2016, the unemployment rate reportedly reached five year high, according to the survey conducted by Labour Bureau.
Unemployment in India: Rising At Alarming Rate
The latest data released by CMIE’s reveals the drastic fall of 42.7% in the total number of job seekers in India.
These findings are derived from the data collected through the survey conducted By CMIE among thousands of domestic households all over India. The figures estimated by the CMIE are considered to be more reliable and valid than the jobless data chart released by the government of India as stated by many industry experts and economists.
In spite of the decreasing job seekers, unemployment factor swarm around India as a major buzzword. It is a crucial aspect to analyse the reasons behind diminishing job seekers, which is in stark contrast to the rising unemployment rate.
As per the CMIE report released in January 2019, about 11 million people lost their jobs in 2018, albeit seems to be a factual uncertain. Mainly due to the aftermath effects of demonetization of high-value Indian currencies in the fag end of 2016, the new job opportunities in India has almost dried up. The subsequent topsy-turvy launch of the new goods and services tax (GST) in early 2017 has destroyed millions of small businesses, resulting in worst time for job seekers.
The Indian government refuted all the claims related to the concerning unemployment situation in the country. Last month the government passively stated in the Parliament that it cannot find any data on the aftermath effects of demonetization on joblessness in Micro Small Medium scale Enterprises (MSME) businesses.
The estimated data on unemployment in India will be a despicable factor for the Prime Minister Narendra Modi due to the general election which is scheduled by May 2019.