07 May Unemployment in India
Unemployment in India – Today Current Affairs
(GS Paper-III,Science & Technology, Economic Development, Bio-diversity, Environment, Security and Disaster Management)
Source: The Hindu
Today Current Affairs
Why in News?
India’s unemployment rate rose to 7.83% in April from 7.60% in March according to data from the Centre for Monitoring Indian Economy (CMIE) .
Important Facts : The Hindu Analysis
The urban unemployment rate has increased from 8.28 per cent in March to 9.22 per cent in April.
Rural unemployment rate decreased from 7.29 per cent to 7.18 per cent.
Unemployment rate was the highest in Haryana at 34.5% followed by Rajasthan at 28.8%, Bihar 21.1% and Jammu and Kashmir 15.6%.
The sluggish domestic demand and the slow pace of economic recovery amid rising prices has impacted the Job opportunities.
Employment has fallen in India from 408.9 million in 2019-20 to 387.2 million in 2020-21 and then recovered to 401.8 million in 2021-22.
The recovery in 2021-22 was inadequate. As the Employment was stagnant 1.7%, or 7 million short of the employment level of the pre-pandemic year of 2019-20.
Concerns : The Hindu Analysis
- Near about 78 million jobs were lost during the period of June 2020, which roughly coincides with the first wave of COVID-19 and 13 million jobs were lost during the second wave during the period of June 2021.
- The unemployed who were actively seeking work but were unable to find any were estimated at 33 million during 2021-22
- Women lose jobs disproportionately during economic shocks and this repeated itself during the pandemic. The Hindu Analysis
- The female labour force participation rate among urban women was as low as 9.4% in 2019-20 and fell to 7% in 2021-22.
- It was difficult to offer appropriate jobs in adequate numbers to aspiring women.
- When India was subjected to the most stringent lockdown in April 2020, 79 million small traders and daily wage labourers lost employment.
- The lockdowns showed both the vulnerability and the flexibility of this category of workers.
- The two big challenges that the pandemic has posed is employing women and providing salaried jobs are going to be difficult to tackle soon.
Initiatives taken by the Government of India : The Hindu Analysis
- MGNREGA-Mahatma Gandhi National Rural Employment Guarantee Act: to provide minimum 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
- Atma Nirbhar Bharat Rojgar Yojana (ABRY) was launched to incentivize employers for creation of new employment along with social security benefits and restoration of loss of employment during Covid-19 pandemic.
- PMRPY-Pradhan Mantri Rojgar Protsahan Yojana: for incentivising employers for creation of new employment. The Hindu Analysis
- NCS-National Career Service: to provide a variety of career related services like job matching, career counselling, vocational guidance, information on skill development courses, apprenticeship, internships etc
- Garib Kalyan Rojgar Abhiyaan (PMGKRA), is a 125-day Abhiyan , with a mission to address the issues of returnee migrant workers and similarly affected rural population by Covid-19 pandemic through a comprehensive strategy of providing immediate employment & livelihood opportunities to the distressed.
- National Rural Livelihoods Mission (NRLM)-AJIVIKA:aims at creating efficient and effective institutional platforms for the rural poor, enabling them to increase household income through sustainable livelihood enhancements and improved access to financial services. The Hindu Analysis
- PM- SVANidhi Scheme, to provide collateral free working capital loan to Street Vendors, vending in urban areas, to resume their businesses which were adversely affectedduetoCOVID-19inducedlock-down.
- PMMY-Pradhan Mantri MUDRA Yojana: is a scheme for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises. The loans are provided by the Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs.
Way Forward : The Hindu Analysis
- This situation of unemployment can be tackled by providing skill development training at an adequate pace.
- Greater investment needs to be directed to small enterprises rather than to large enterprises in order to bring about the employment objective and the output objective
- Central government needs to give a directive and incentive to the industries to train rural and tribal youth in their occupations so that skill development training can take place.
- Also there should be emphasis over providing social security to the poor, so that people do not die out of hunger and malnutrition.