Unemployment is a major problem in India. This problem is aggravating day by day. India has a population of about 1.20 billion. Many of the Indians are jobless. The problem of unemployment is rising fast. Every able-bodied man and woman must get employment. If not, the problem of unemployment will create difficulties for the development of the country.
Many age-old businesses that are not able to cope-up with the changing demand and economic scenario are either closed down or heavy retrenchment takes place in them. When there is a slump in business, many people find themselves jobless.
The unemployment rate in India has doubled between July 2017 and April 2018, whereas the number of jobs in the country in the last financial year 2017-18 also fell to 406 million from 406.7 million in the previous year, data from the Centre for Monitoring Indian Economy show. The fast pacing unemployment rate in the country rose from 3.39% in July 2017 to 6.23% in March 2018 and is projected to reach 6.75% in April 2018, according to the CMIE data.
The unemployment rate between July 2017 and October 2017 rose significantly from 3.39% to 5.04%. It declined for two months — November and December to 4.76% and 4.78% respectively and started rising again from January 2018. Jobless growth is one of the major challenges the country is facing.
There have been softer recruitments in the corporate sector with just 2-3% growth rate, while jobs in the public sector have not increased. A lot of people are understood to have lost their jobs when housing projects got stuck last year.
On the other hand, Prime Minister Narendra Modi has emphasised on his government’s efforts towards boosting self-employment, such as small business loans through Mudra scheme.
However, the World Bank has put forth a different view. In a comprehensive report on India’s economy, it said that India needs to create a lot of salaried jobs (formal jobs) to meet the working population demands of this country and step up its growth to a middle-income country.