How bad is the highest unemployment rate in Delhi-NCR?
Unemployment rate is at four-decade high of 6.1% in 2017–18: NSSO survey.
Unemployment rate is at four-decade high of 6.1% in 2017–18: NSSO survey.
Break up looks worrying:
Rural male youth between 15–29 years: Unemployment rose from 5% to 17.4%
Rural female youth: Unemployment rose from 4.8% to 13.6%
Urban male: Unemployment at 18.7%
Urban female: Unemployment at 27.2%
Educated rural females: Unemployment rose from 9.7% to 17.3%
Educated rural males: Unemployment rose from 3.5% to 10.5%
Labour force participation rate (LFPR) : The proportion of population working or seeking jobs — declined from 39.5 per cent in 2011–12 to 36.9 per cent in 2017–18.
What does it mean?
Economy is not creating new jobs. Growth in jobs in the manufacturing segment has been stagnant for a long time.
Economy is not able to skill the job seekers. People moving away from farm sector are joining the retail and transportation sector as it requires less skills than manufacturing.
Nearly 50% of India’s working-age population is not contributing to any economic activity.
Unemployment is secular. It impacts people from all the religions.
The policies for promoting manufacturing is not able to generate jobs. Remember Make in India, Digital India, Stand Up India etc. They aren’t working.
Why is it so?
Events such as demonetisation and GST caused more unemployment than the report suggests.
Lack of reforms such as contract law, labour law, land law, banking reforms etc. is preventing more private investment.
Focus on higher education removes the focus from skill building.
How does it matter for Delhi-NCR?
Lower private investment results in less industrial growth in the region, as Delhi-NCR is dependent on manufacturing and services.
Lack of skill building isn’t supplying high quality manpower to industries. It will limit the growth of the firms in terms of revenues and value chain.
Lack of growth and employment will affect businesses and the local economy.
A year ago things were the same.
Time to Restart again:
Mihir Sharma, an economist, had suggested NDA to restart Indian economy in 2014. It’s never too late.