No Jobs For Millenials Will Be A Big Headache For India
Job market continues to fall as has been evident by several reports from the Labour Bureau reports in the past
Almost around 90 lakh (9 million) jobs were lost between October 2016 and October 2017, as per the latest CMIE data. Job market continues to fall as has been evident by several reports from the Labour Bureau reports in the past. This continues the trend of falling employment in the past three years as recorded by successive Labour Bureau reports.
The unemployment rate reported by CMIE was 5.7 percent in October. This is up from 3 percent in July, rising regularly. Meanwhile, the Index of Industrial Production (IIP) for September showed a downtrend with a growth of just 3.8 percent compared to 5 percent last September, indicating a slowdown affecting the industrial sector without restrictions, which could be a main reasons for job losses.
Consumer durables production has dropped by 4.8 percent while infrastructure and construction goods production showed a minor growth of 0.5 percent.
Finance minister recently claimed that 25,000 people annually will get jobs for the next five years in road infrastructure projects. Even if it turns out to be a reality, it is just some drops of water to the sea. Nearly 1.2 crore people enter the Indian workforce every year, and there has been no serious efforts on the part of the government to solve the crisis, which came to power in 2014, promising 1 crore jobs every year.
The job losses reported by CMIE show a sharp decline from November 2016, after the demonetisation. The sudden announcement led to a slowdown in various sector, with manufacturing being one of the worst hit sector leading to low output.
The average work participation rate during the ten months preceding demonetisation was 47 per cent. During the ten months following demonetisation, the average labour participation rate was 44 per cent.
With a massive population entering the workforce every year and no jobs being created, India will a huge employed population to handle. With a lot of people losing out of jobs on account of being un-skilled, India will have a headache to handle and create jobs for the population, which is majorly millennial.