If the final indicator of any economic success is the number of new jobs being created, it is bad news during the 2 years of Modi government. The central government rightly says that GDP growth has accelerated; inflation, current account deficit and fiscal deficit are under control etc. Point taken though luck ( in the form of lower crude oil prices) has played a very important role.
But where the government had to really deliver, that is in creating jobs, it certainly has failed. Consider the following
- In 2015, India added the fewest organised-sector jobs—in large companies and factories—in seven years across eight important industries.
- The proportion of jobs in the unorganised sector—without formal monthly payment or social security benefits—is set to rise to 93% in 2017.
- Rural wages are at a decadal low, as agriculture—which accounts for 47% of jobs—contracted 0.2% in 2014-15, growing 1% in 2015-16.
- As many as 60% of those with jobs do not find employment for the entire year, indicating widespread ‘under-employment’ and temporary jobs.
- The formation of companies has slowed to 2009 levels, and existing companies are growing at 2%, the lowest in five years.
- With large corporations and public-sector banks financially stressed, the average size of companies in India is reducing, at a time when well-organised large companies are central to creating jobs.
You can download Quarterly Report on Changes in Employment in Selected Sectors Labour Bureau, Ministry of Labour and Employment
Worse still, higher the education – higher the unemployment
Agriculture still remains biggest employer but IT IS WORSENING