Unemployment confirmed at 45-year high in FY18; leaked NSSO report now official
By: FE Online | Updated: May 31, 2019 6:00:53 PM
The unemployment stood at 6.1 per cent in FY18, the highest level in at least 45 years, Periodic Labour Force Survey FY18 showed.
The unemployment stood at 6.1 per cent in FY18, the highest level in at least 45 years, Periodic Labour Force Survey FY18 showed. The unemployment rate in urban and rural areas stood at 7.8 per cent and 5.3 per cent, respectively, the government data showed. Interestingly, a NSSO report leaked last January had showed India’s unemployment rate rising to 6.1 percent, the highest level in at least 45 years in 2017-18. The previous Modi government didn’t release the data, citing it as a draft report. The survey is the first comprehensive data on the scenario of employment in the country under the alst Modi government and it also takes into account the impact of demonetisation on the economy.
The periodic labour force data was made public along with GDP numbers for the Q4FY19 and provisional estimates for full FY19. The GDP grew at 5.8 per cent in the fourth quarter of FY19, even as the full fiscal 2019 saw a growth rate of 6.8 per cent, a 5-year low, the Central Statistics Office (CSO) data showed. Analysts in CNBC TV18 polls estimated Q4 growth at 6.3 per cent.
In the upcoming June monetary policy, the Reserve Bank of India (RBI) is likley to cut the interest rates in order to boost liquidity in the system amid fears of slowdown.According to a Reuters poll of economists, the central bank may cut rates at the third consecutive meeting next month.
The Modi government was under constant crtiticism during its last term over the issue of jobs for the youth in the country. Even during the campaign period of the 2019 general elections, the opposition parties attacked the government for failing to generate adequate number of jobs for the country’s youth.