Jobless economic growth continues to haunt India's youth, with the country’s unemployment rate rising to a five-year high of five per cent in 2015-16, according to the latest annual household survey on employment conducted by Labour Bureau.
The country’s unemployment rate, as measured by the Bureau, stood at 4.9 per cent in 2013-14, 4.7 per cent in 2012-13 and 3.8 per cent in 2011-12.
While unemployment rate in rural areas rose to 5.1 per cent in 2015-16 from 4.7 per cent in 2013-14, it declined to 4.9 per cent from 5.5 per cent in urban areas during the same period.
Females are affected adversely
Female job seekers were the worst hit as the pace of unemployment rose sharply to 8.7 per cent in 2015-16 compared to 7.7 per cent in 2013-14, data from the Fifth Annual Employment-Unemployment Survey showed.
Lower ratio of employment:
The annual survey also showed that 47.8 per cent of the surveyed population was reported to be employed in 2015-16 compared with 49.9 per cent two years earlier when the previous survey was conducted by the Labour Bureau, under the Ministry of Labour and Employment.
Reasons behind the increasing Unemployment:
1. Changing Pattern: The pattern of employment in the corporate sector is changing. Companies are looking to hire productive workers so there is a reduction in absorption of labour.
The construction sector which is the most labour-intensive sector following agriculture is not growing, leading to slow growth in job creation.
In the manufacturing sector, growth has come predominantly from improvement in efficiency and not too much due to a rise in output, so the growth in employment is much slower.
2. The survey showed a decline in the proportion of self-employed and salaried workers and a rise in contractual employment.
The fact that both self-employment and government programme jobs are dipping shows that unemployment rate is high.
3. Fewer households benefited from various employment schemes of the government in 2015-16, the survey showed.
For instance, the benefits of Mahatma Gandhi National Rural Employment Guarantee Act scheme were availed by 21.9 per cent households compared to 24.1 per cent households in 2013-14.
4. Graduates and post-graduates have cited non-availability of jobs that matched their education or skill and experience, as the main reason for unemployment.