Unemployment in India

The Unemployment Situation in India

With an estimated 1.324 billion inhabitants in 2016, India has the largest population of Asian countries. The rate of unemployment has been worrying, with a UN labor forecast showing sluggish job growth. Despite an increase in the number of jobs produced in India in 2016, the manufacturing industry’s unemployment rate has been decreasing (Unnikrishnan, 2016). According to the UN survey, the global labour force is rising by the day, making it difficult to balance social crisis and global economy. Similarly, it is projected that the market conditions may deteriorate in 2017 in emerging countries as deep recessions experienced in 2016 are still affecting the labor markets (Press Trust of India, 2017).

Unemployment Rate Predictions

According to trade economics, the unemployment rate is expected to hit 4.70 percent by the end of 2017. In the long term, the rate will be 4.60 percent in 2020 based on econometric models (Press Trust of India, 2017). However, the annual GDP growth of the country has been 7.6 percent making India a rapidly growing economy (Press Trust of India, 2017). The nation has benefited from internal government adjustments and a crash in oil prices making consumer inflation lower than that of two years ago.

The Impact of Automation on Employment

A recent report claims that increased automation may be a problem for India as it threatens the employment of over 69 percent of the jobs available (Press Trust of India, 2017). Traditional methods that created employment will be affected creating more unemployment for the citizens. By 2022, despite the commendable growth rate in the GDP, India may still have an alarming number of unemployed people (Unnikrishnan, 2016).

Government Efforts to Improve the Financial Status

The current government has been committed to changing the financial status of the country as more collaborations are being sought from developed nations to help in the mobilization of resources and improve the livelihood of citizens (Unnikrishnan, 2016).

References

Press Trust of India, (2017, January 13). Unemployment in India to increase in 2017-18; rate to remain at 3.4%: UN. Business Standard. Retrieved from http://www.business-standard.com/article/economy-policy/unemployment-in-india-to-increase-in-2017-18-rate-to-remain-at-3-4-un-117011300307_1.html

Unnikrishnan, D. (2016, November 14). With unemployment at a 5-year high, even a 7.6% GDP growth means little to India’s poor. FirstPost-Business. Retrieved from http://www.firstpost.com/business/unemployment-at-5-year-high-why-a-jobless-gdp-growth-could-spoil-narendra-modis-2019-run-3043170.html