Indias unemployment rate hit four-decade high after demonetisation
- Author: Eleanor Harrison Feb 01, 2019,
Feb 01, 2019, 2:12
However, the stunned government had issue clarification after the resignations and said that the external members complaining about difference of opinion never said anything during the meetings of the National Statistical Commission. "When the data is ready we will release it", Rajiv Kumar, Vice Chairman of NITI Aayog, a government policy advisory body, said at a press conference in New Delhi. "What we have been repeatedly saying about demonetisation has been proved by the report which the government has kept under wrap but has been revealed by the media", said Sharma.
He rejected the findings of the NSSO report citing that India has witnessed an 11-12 percent nominal economic growth, which could not have been possible without employment being generated.
Kant added that India is creating enough jobs for new entrants but may not be creating enough good quality jobs.
The news report further said that unemployment was higher in urban areas (7.8 per cent) as compared to 5.3 per cent in rural areas of the country.
The report said that joblessness stood at 7.8 percent in urban areas compared with 5.3 percent in the countryside.
The data is significant because this was the first comprehensive assessment of India's employment situation conducted after Modi's decision in November 2016 to withdraw most of the country's banknotes from circulation overnight, the report said.
The country has lost as many as 11 million jobs a year ago, according to the Centre for Monitoring Indian Economy, an independent think-tank. The labour force participation rate - the proportion of population working or seeking jobs - declined to 36.9% in 2017/18 from 39.5% in 2011/12. The government will approve the report which has not been finalised yet.
The report will be released by March, he added.
After the chaotic launch of a national sales tax in July 2017, hundreds of thousands have lost jobs in small businesses.
This is a big blow for Narendra Modi government as the budget session of Parliament - the last one before the next general election - kicks off.
The numbers show that Modi's ambitious Make-in-India project, which aims to lift the share of domestic manufacturing from 17 percent of gross domestic product (GDP) to about 25 percent and create jobs for an estimated 1.2 million youth entering the market, has failed to take off.
Pronab Sen, former chief statistician of India said unemployment in the India has been rising since 2012 but the attempts to suppress the publication of data was not a solution.