Joblessness rises to 5-year high [Governance, Economy]
- Jobless economic growth continues to haunt India’s youth, with the country’s unemployment rate rising to five-year high of five per cent in 2015-16, according to latest annual household survey on employment conducted by Labour Bureau.
- India’s economy grew 7.1 per cent in the first quarter of 2015-16, slowing from 7.9 per cent a year earlier.
- The country’s unemployment rate, as measured by the Bureau, stood at 4.9 per cent in 2013-14, 4.7 per cent in 2012-13 and 3.8 per cent in 2011-12.
- Female job seekers were the worst hit as the pace of unemployment rose sharply to 8.7 per cent in 2015-16 compared to 7.7 per cent in 2013-14.
- While unemployment rate in rural areas rose to 5.1 per cent in 2015-16 from 4.7 per cent in 2013-14, it declined to 4.9 per cent from 5.5 per cent in urban areas during the same period.
- The pattern of employment in the corporate sector is changing. Companies are looking to hire productive workers so there is a reduction in absorption of labour.
- The construction sector, which is the most labour-intensive sector following agriculture, is not growing, leading to slow growth in job creation.
- Fewer households benefited from various employment schemes of the government in 2015-16. For instance, the benefits of Mahatma Gandhi National Rural Employment Guarantee Act scheme were availed by 21.9 per cent households compared to 24.1 per cent households in 2013-14.
- The survey showed a decline in the proportion of self-employed and salaried workers and a rise in contractual employment.