Joblessness at 5 year high in India

unemploymentAccording to a survey conducted by the Labour Bureau, joblessness in India is running at a 5-year high of 5% of the 15-plus years work force.

Over one third of working people are employed for less than a year and 68% of households are earning up to just Rs.10,000 per month.

Some 7.8 lakh persons in 1.6 lakh households were surveyed across India between April and December 2015. As was expected urban areas continue to provide more and better paying jobs compared with the rural areas.  While 82% of job seekers get year-round jobs in urban areas, just 53% of rural job seekers get such security.

About 42% of workers in rural areas work for less than 12 months a year, depending on seasonal agriculture work.  This means that 77% of rural households end up with an average monthly income of less that Rs.10,000.  In urban areas about half the households earn between Rs.10,000 and Rs.50,000 a month.

These findings of the first large sample survey after the Modi government took power in 2014, show that the situation on the ground continues to be dire. It shows a continuation of a distressing job situation and hence economic status – that was reflected in earlier surveys.

Women’s employment also continues to stagnate with 8.7% of women in the labour force without jobs.

Unfortunately the Modi government’s pronouncements for job creation such as Make in India, Start-Up India, and Digital India, do not seem to have had the desired impact…yet.