CMIE study finds unemployment rate in India up 6.9%, highest in two years
CMIE -The Centre for Monitoring Indian Economy study has revealed that the unemployment rate in India increased to 6.9%, the highest in two years. Worst still, the labour participation rate – a measure of the proportion of adults willing to work – dipped to 42.4, the lowest since January 2016, quoting CMIE, TOI reported.
The study further said that the labour participation rate had a sharp fall, thanks to the demonetisation of the Union Government, from 47-48%, which is yet to recover. The marginal improvement in labour statistics seen in September this year too turned out to be short-lived as the following month’s figures pointed to a continuation of the deterioration in labour markets seen earlier, citing the think-tank, the report said.
The number of people employed during October this year was pegged at 397 million, which was 2.4% lower than the 407 million people employed in the year ago period. This sharp decline in the employment rate in October is perchance the most worrisome measure of the labour markets, quoting the CMIE bulletin, the report continued.
The number of the unemployed people who are actively searching for jobs showed an upward tick of 29.5 million in October this year from a low of 14 million in July last year and 21.6 million in October 2017, the bulletin said.
Aditya Narayan Mishra, CEO, CIEL HR Services was quoted as saying by the report that the October to December was traditionally the job creation period across sectors in the Indian economy. Having said that the mismatch between demand and supply of labour was hence worrying, while annually, almost twelve million persons enter India’s labour markets and job creation hasn’t been robust enough to support this.”.
Mishra further stated that the subdued performance of the core sectors including power and infrastructure, along with inadequate lending by NBFCs might as well be the reason for the mismatch and concluded by saying that the IT Industry had not also created many jobs in this period.
CIEL is the human resource providing firm, based out of Bangalore. Be it contractual roles or full-time hires; its service offerings are guaranteed to meet all the talent acquisition needs. It has staffing services as well as hiring services. Drawing upon the experience of its leaders in the global markets in the past, CIEL is quickly replicating the kernel of its business in geographies outside India. What is more, its team’s source talent globally for firms in the Middle East and Africa? The Centre has just embarked on its global foray, and it is looking to grow the footprint fast in the coming years.