Around 32 Million Indians are unemployed and it will get more worse in the coming days.
The number of job-seekers in India, rising steadily over the last few months, spiked to 7.1% in the year as of 2018.
There are around 31 million unemployed Indians seeking jobs now—the highest since October 2016, according to a report published on Feb. 27 by the Center for Monitoring Indian Economy ( CMIE ), a think-tank that tracks business and economic data.
After falling to a low of 3.4% in July 2017, unemployment rates have been rising gradually, the CMIE data show.
"Unemployment levels have been steadily rising, and after several years of staying around 2-3%, the headline rate of unemployment reached 5% in 2015, with youth unemployment being a very high 16%," the State of Working India 2018 (SWI) report said.
"This rate of unemployment is the highest seen in India in at least the last 20 years," the report added.
This shortage of jobs is compounded by depressed wages, with 82% of men and 92% of women earning less than Rs 10,000 per month.
The report also notes that the growth in Gross Domestic Product (GDP) hasn't resulted in a commensurate increase in employment.
"A 10% increase in GDP now results in less than 1% increase in employment," says the study.
The report calls rising unemployment a "new" problem for India.
"It used to be said that India's problem is not unemployment but underemployment and low wages. But a new feature of the economy is a high rate of open unemployment, which is now over five percent overall, and a much higher 16%t for the youth and the higher educated. The increase in unemployment is clearly visible all across India, but is particularly severe in the northern states," it says. States such as Chhattisgarh, Gujarat and Karnataka are exceptions to the trend of rising unemployment nationally.
NO LIVING WAGE:
Another significant trend that the report highlights is the problem of low earnings. "Nationally, 67% of households reported monthly earnings of up to Rs 10,000 in 2015. In comparison, the minimum salary recommended by the Seventh Central Pay Commission (CPC) is Rs 18,000 per month. This suggests that a large majority of Indians are not being paid what may be termed a living wage, and it explains the intense hunger for government jobs," the report observes. Worryingly, it adds that 90% of industries even in the organised manufacturing sector "pay wages below the CPC minimum. The situation is worse in the un-organised sector".
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