Home Top News Unemployment surged in India – 77% of the families reportedly have no regular wage earner

Unemployment surged in India – 77% of the families reportedly have no regular wage earner

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Unemployment surged in India – 77% of the families reportedly have no regular wage earner
unemployment, employment rate, employment rate in india, economy, gdp, job losses, jobs in india, job loss, unemployed youths

The unemployment rate of India is currently standing at 9.4 per cent which in absolute terms means that around 40 million people in India are currently unemployed. India’s jobless rate rose as unemployment surged in the nation’s rural areas; even as non-farm jobs notch up gains with the economy emerging from pandemic curbs.

Recently fifteen job openings for peons, drivers and watchmen in Madhya Pradesh’s Gwalior saw nearly 11,000 unemployed young men flock to the city on Saturday and Sunday not just from within the state but also from neighbouring Uttar Pradesh.

Although the jobs needed candidates who had cleared the 10th-grade exams, applicants included graduates, post-graduates, engineers, MBAs, and even civil judge aspirants. People who have PhD were in the line there.

Madhya Pradesh Chief Minister Shivraj Singh Chauhan said, “We will recruit one lakh in a year. We will leave no stone unturned to fill the backlog posts,” he said a few days ago, adding, “Everyone wants employment in government services but I want to tell you the truth is that each and every student can’t get a government job.”

But numbers tell a different story. The total number of unemployed in the employment registration offices of Madhya Pradesh is 32,57,136. This is in spite of the fact that the School Education Department has 30,600 vacant posts, Home Department has 9,388, Health Department has 8,592, and the Revenue Department has 9,530 vacancies. 

Around one lakh posts are vacant in different departments of the state government. A recent street vendor scheme of the government saw 15 lakh applications; of the 99,000 selected, almost 90 per cent are graduates. However, another figure – that from the National Crime Records Bureau (NCRB) – shows that no fewer than 95 people have died by suicide because of unemployment last year in Madhya Pradesh alone.

T Dilip said, “Unemployment and underemployment in India are caused by more basic structural factors such as lack of capital, use of capital-intensive technologies, lack of access to land for agricultural household, lack of infrastructure, the rapid growth of population resulting in large annual increments in labour force year after year.”

Adv Sudhakar said, “Reason for the slow growth of employment in the organized sector has been the existence of unduly rigid protective labour legislation which makes it very difficult to retrench a worker who has been employed for 240 days. Labour legislation is so rigid that it is even difficult to close down the unit and quit the industry. Thus, this excessively protective labour legislation induces private entrepreneurs to prefer the maximum use of capital in place of labour.”

Shivendra Tripathia student says, “Rising population is one of the major causes of unemployment in India. The shift of the Indian economy from the agriculture sector to the service sector. Various climatic factors and Pandemic such as Covid-19 has exaggerated the situation. Discriminating in giving employment on the basis of race, caste, sex and religion could be also a major cause of unemployment among vulnerable sections of society. The slow economic growth of India in the past few decades has worsened the situation. Migration of people from rural to urban areas can also lead to unemployment in urban areas.”