Even though India’s economy is growing at a fast pace, the ‘higher educated’ are reporting the highest unemployment rate against the national average, a report published on by Azim Premji University showed.
Even though India’s economy is growing at a fast pace, the ‘higher educated’ are reporting the highest rate of unemployment against the national average, a report published on by Azim Premji University showed. The unemployment scenario is most ‘severe’ in the northern states of the country, report also revealed.
“It used to be said that India’s problem is not unemployment but underemployment and low wages. But a new feature of the economy is a high rate of open unemployment, which is now over five percent overall, and a much higher 16% for the youth and the higher educated. The increase in unemployment is clearly visible all across India, but is particularly severe in the northern states,” it says.
GDP growth not adding to jobs
The brisk economic growth is not leading to enough jobs with less than one percent growth in employment creation, it added. At present, a 10 percent rise in GDP results in less than 1 percent surge in employment, report said. “In the 1970s and 1980s, when GDP growth was around 3-4%, employment growth was around 2% per annum. Since the 1990s, and, particularly in the 2000s, GDP growth has accelerated to 7%, but employment growth has slowed to 1%, or even less,” it said.
Total employment shrank by 7 million between 2013-15
“Between 2013 and 2015, total employment actually shrank by 7 million. More recent data from private sources show that the absolute decline has continued past 2015,” the university said in a report titled ‘State of Working India 2018’, the report said.
“This suggests that a large majority of Indians are not being paid what may be termed a living wage and it explains the intense hunger for government jobs. Even in the organised manufacturing sector 90% of the industries pay wages below the CPC minimum. The situation is worse in the unorganised sector,” the report also said.
Meanwhile, EPFO data showed that 10.5 lakh new subscribers were added in July this year.