As per the latest data released by the Labour Ministry, the unemployment rate in India in 2017-18 stood at 6.1% – which, as per a periodic labour force survey, is the highest it has been in the last 45 years.
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The reports stated that 7.8% of employable urban youth were jobless, while the percentage was 5.3% for rural. Furthermore, among the men the joblessness on all-India basis was 6.2%, while it was 5.7% in case of females
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However, per The Hindu, Statistics Secretary Pravin Srivastava shared that the comparison with past records was inaccurate because a new matrix was used currently.
I don’t want to claim that it is 45-year low or high. The point is that it is a different matrix. From 2017-18 onwards, you will be getting regular estimates and this (labour force survey) can be used as a base. When we change the matrix, it is very difficult to measure (compare) because there is no means to do a retrospective analysis in that year based on the earlier matrix.
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The data was released after the results for the 17th Lok Sabha Elections were announced – where BJP won with a majority, and consequently, Narendra Modi was sworn in as the Prime Minister again.
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However, chief statistician Pravin Srivastav shared with Economic Times that the delay in the report was not due to political pressure, but due to the change in methodology.
We can’t do a retrospective analysis based on the previous methodology — there was no (political) pressure. The earlier data was captured using monthly per capita income to measure unemployment — now education is the criteria. We have not delayed the report, we have only brought in new information.
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However, it’s not the unemployment rate alone that is a point of grave concern. As per the data released by Central Statistics Office (CSO), even India’s GDP growth, at 5.8%, was the slowest since 2014-15.
Even if we don’t draw a comparison with past records, the current unemployment rate hints at a dangerous trend – where despite receiving formal education and training, the youth is devoid of ample job opportunities. Here’s hoping the current government takes appropriate measures to tackle the rising unemployment.