Unemployment Rate Shoots Up, 1 Cr Jobs Lost in 2018: CMIE Report

In 2018, 91.4 lakh or over 83 percent of the jobs were reportedly lost in the rural areas alone.

(Photo: The Quint)

The estimated unemployment rate shot to a 27-month high of 7.38 per cent in December 2018 and numbers of those employed fell by 1.09 crore over the last 12 months, reported The Indian Express, quoting a Centre for Monitoring Indian Economy (CMIE) report.

The report, based on database from over 1,58,000 households, reportedly shows that not only has unemployment increased, but labour participation has dropped.

Highest Unemployment Rate Since Sept 2016

While the unemployment rate in December 2018 went up to 7.38 percent from 6.62 percent in the previous month, it was 4.78 percent in December 2017. However, this is also the highest unemployment rate since September 2016 when it was recorded at 8.46 percent, reported the newspaper.

In 2018, 91.4 lakh or over 83 percent of the jobs were reportedly lost in the rural areas alone. The number employed in rural areas also dropped – from 26.94 crore in December 2017 to 26.03 crore in December 2018.

Cong Slams BJP Over Unemployment

The Congress on Sunday, 6 January, targeted the BJP government at the Centre over “growing unemployment” in India and cited the think-tank’s report to claim that over one crore jobs were lost last year.

Congress Spokesperson Manish Tewari alleged that the BJP-led NDA government failed to fulfil its promise of providing two crore jobs every year and the country lost one crore jobs instead.

“During the 2014 elections, Modi had promised 'Acche Din' (good days), which included (providing) two crore jobs every year. In five years, this sums up to 10 crore (jobs).”

The Congress leader, quoting the report, said that in December 2017, 40.79 crore people were employed but in 2018, it was reduced to 39.07 crore.

“Which means more than one crore people lost their jobs. It is astonishing that more than 80 percent of those unemployed were women and more than 90 percent belonged to rural India,” Tewari said citing the report.

“This is the highest in a decade. Daily wage labourers and small businesses suffered the most. These are the same who were affected by demonetisation,” the Congress leader said.

Tewari also alleged that the Narendra Modi government has failed to understand that distress in society and smooth functioning of economy do not go hand in hand.

(With inputs from The Indian Express, PTI)