Unemployment Rate at 45-Year High: 4 Key Takeaways From NSSO Data | The Quint

Summary

India faced its worst unemployment rate since 1972 between 2011-12 and 2017-18, with a high of 6.1% in 2017-18, as per the National Sample Survey. The crisis saw a threefold increase in joblessness among rural men and women, and urban unemployment rates also soared. The labor force participation rate declined, reflecting a shrinking workforce or job-seeking population. This report, controversially withheld by the government, critiques Modi's economic policy ahead of the 2019 elections, impacting the BJP's voter base significantly.

Takeaways

• 📊 India experienced its worst unemployment rate since 1972 between 2011-12 and 2017-18, with a threefold increase by 2017-18, reaching an unprecedented high of 6.1%.
• 🏢 The National Sample Survey data, based on fieldwork from July 2017 to June 2018, was controversial, leading to the resignation of National Statistics Commission members, including the acting chairman, over the government's delay in releasing the report.
• 🚶‍♂️ Unemployment among rural men aged 15 to 29 years more than tripled from 5% to 17.4% between 2011-12 and 2017-18.
• 🚶‍♀️ In rural areas, the unemployment rate for women surged from 4.8% in 2011-12 to 13.5% in 2017-18.
• 🏙️ Urban unemployment rates also saw a significant rise for men, from 8.1% to 18.7%, and for women, nearly doubling from 13.1% to 27.2% over the same period.
• 📉 The labor force participation rate, which accounts for the percentage of the population working or seeking jobs, declined from 39.5% in 2011-12 to 36.9% in 2017-18.
• 📉 The decline in labor force participation indicates a shrinking workforce or a growing number of discouraged job seekers.
• 🏆 The Modi government, which campaigned and won on job creation, faces a significant critique with these figures, especially as the first survey post-demonetization.
• 🗳️ 34% of young jobseekers voted for BJP in 2014, and this demographic is most impacted by unemployment, which could influence the upcoming 2019 general elections.
• 🤔 The report raises questions about the government's economic policy and its impact on job creation, particularly in the context of the upcoming elections.
• 📈 The data suggests an urgent need for policy intervention to address the unprecedented unemployment crisis in India.

Q & A

What was the worst rate of unemployment in India since 1972?

The worst rate of unemployment in India since 1972 was recorded between 2011-12 and 2017-18, with an unprecedented high of 6.1% in 2017-18.

What was the controversy surrounding the National Sample Survey report?

The controversy was that the National Statistics Commission members, including the acting chairman, resigned alleging that the government was withholding the release of the report.

How did the unemployment rate among rural men aged 15 to 29 years change from 2011-12 to 2017-18?

The unemployment rate among rural men aged 15 to 29 years jumped from 5% to 17.4%, which is more than three times the rate in 2011-12.

What was the increase in unemployment rate for women in rural areas from 2011-12 to 2017-18?

The unemployment rate for women in rural areas rose from 4.8% in 2011-12 to 13.5% in 2017-18.

How did urban male unemployment rates change during the same period?

Urban male unemployment rates rose from 8.1% in 2011-12 to 18.7% in 2017-18.

What was the increase in urban female unemployment rates from 2011-12 to 2017-18?

The urban female unemployment rate nearly doubled from 13.1% in 2011-12 to 27.2% in 2017-18.

What does the labor force participation rate indicate about the population's engagement with work or job seeking?

The labor force participation rate declined from 39.5% in 2011-12 to 36.9% in 2017-18, indicating that a smaller percentage of the population is working or seeking jobs.

What does the unemployment crisis imply about the current state of the country according to the script?

The unemployment crisis implies that there is an unprecedented situation of joblessness in the country, which is a significant critique of the Modi government's economic policy.

How did the Modi government perform in the 2014 elections in terms of job creation promises?

The Modi government fought and won the 2014 elections on promises of job creation, with 34% of young jobseekers voting for BJP.

What impact might the unemployment crisis have on the upcoming 2019 general elections?

The unemployment crisis is likely to have a significant impact on the 2019 general elections, especially for the constituency of young jobseekers who voted for BJP in 2014.

What was the context of the unemployment data being the first survey post demonetization?

The unemployment data is significant as it is the first survey conducted post demonetization, which was a major economic policy implemented by the Modi government.