The country’s employment increased in December, giving some hope. But unemployment rose as more people
went out to find work. As a result, on the first day of the year, the cloud of fear again thickened.
On Sunday, the Center for Monitoring Indian Economy (CMIE), an advisory body, reported that the
unemployment rate in the country reached 8.30 percent in December. Most in 16 months. Taking urban areas
alone, it has crossed 10%. The countryside is not without concern. But the 7.44% rate there is a little less than
that.
The question has arisen, when financial activities have been fully opened, why is unemployment rising?
Especially when the Modi government is constantly claiming to be the backbone of the Indian economy. The
message is that no matter how the global economy is in crisis, India is doing much better than many other
countries. Progress in the industry continues.
Experts claim, the problem lies here. As the economy improves, more people come out to find work. But not
so much work is being created in the market. Therefore, even as employment rises, it becomes difficult to
reduce unemployment.
Comment of the CMI MD
CMI MD Mahesh Vyas told Reuters news agency that the increase in unemployment is not as bad as it seems.
Because, within the last one year, the crowd of those interested in participating in the job market has
increased the most, up to 40.48 percent. The employment rate of 37.1 percent that month was also the
highest in a year.
However, experts agree that the Modi government’s biggest challenge ahead of the Lok Sabha elections in
2024, along with rising prices, is tackling unemployment. According to the concerned circles, it is necessary to
immediately increase the investment in the country. Otherwise, the problem will increase. The opposition
Congress is stepping up its attacks on prices and jobs ahead of elections.
According to Rajendra Paramanik, professor of economics at IIT Patna, fear of recession in developed countries
is reducing India’s exports. Which is one of the reasons for many people losing their jobs. Small and
unorganized firms are unable to raise capital by taking loans due to high interest rates. The job market is also
suffering from this. According to financial expert Anirban Dutta, the rise in urban unemployment is alarming.
Especially in parts of the world where the economic risks are also increasing as the new Covid increases. He
claimed that either the Ministry of Labor should provide clear statistics or accept the real problem and solve it.
Unemployment in the country touched 8% in November. Its weekly rate was hovering above 8 percent in
December. Once it crossed nine percent. According to sources, there were signs that the uneasiness with the
job market at the end of 2022 was going to increase.
Conclusion
Experts like Anirban say that tax hikes or stock market runs alone do not reflect the true state of the economy.
Rather it is witness to reports of rising income inequality in India.