New Delhi: There is a troubled news has come for the government just a few days before the general elections. The rate of unemployment in the country has reached record level since the year 2016. The government is already on the target of opposition to cheap agricultural produce and low growth in jobs. This is revealed by the data released by the Center for Monitoring Indian Economy (CMIE).
During February, 2019, the unemployment rate has reached 7.2 percent in the country. This is the record level since September, 2016. Unemployment rate was 5.9 percent in February, 2018. CMIE is a reputable think tank of the private sector, whose figures are considered to be very reliable.
According to the reports, this figure of CMIE is based on a survey conducted in millions of households across the country. CMIE’s chief Mahesh Vyas told that, despite the decline in the number of job seekers, the unemployment rate has increased in record. He said that about 40 crore people are expected to be in the job in February, while in February last year, the figure was 40.6 crore.
It is worth mentioning that in the Lok Sabha elections to be held between April and May, this figure can be troublesome for the Modi government. However, the government issues data on its level of unemployment and the government has repeatedly said that the need to change the old criteria for measuring the unemployment rate is needed.
In a newspaper report last December, it was claimed that the level of unemployment in the year 2017-18 reached record level of 45 years. It was claimed in the newspaper that it is a leak report of NSSO.
In the report released in January by CMIE, it was stated that in 2018 nearly 1.1 crore people became unemployed. Demonetization made by the Modi government in 2016 and the GST applicable in 2017 were responsible for this. The government had said in Parliament last month that it did not have a figure that the currency ban has affected the jobs.
Vyas said that the labor participation rate was 42.7 percent in February, while in January it was 43.2 percent. Labor participation rate was 43.8 percent in February, 2018. The decrease in labor participation means that the number of job seekers has also declined. If this and unemployment rate are added, the problem goes deeper.
The newspaper had then published that according to the survey conducted by the National Sample Survey Office, the unemployment rate in India was 6.1 percent in the year 2017-18. There was a lot of controversy as this report leaked and the Opposition got an opportunity to attack. However, NSSO has not yet released the unemployment figure.
According to CMIE estimates, the population of working age in India increases by about 2.3 million every year. If it is estimated that 42 to 43 percent of the participants are included in the Labor Force, 96 lakh to 99 lakh new people are added to the Labor Force every year.