homeeconomy NewsIndia's unemployment rate hits four decade high, says report

India's unemployment rate hits four-decade high, says report

The NSSO employment report added that the unemployment rate was at its highest level since 1972-73 - the period since when the data is comparable, reported Business Standard. 

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By CNBC-TV18 Jan 31, 2019 2:42:47 PM IST (Updated)

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India's unemployment rate hits four-decade high, says report
India's unemployment rate stood at a 45-year high of 6.1 percent during 2017-18, according to National Sample Survey Office's (NSSO) periodic labour force survey (PLFS). The report that was accessed by Business Standard added that the unemployment rate was at its highest level since 1972-73 - the period since when the data is comparable. 

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The employment survey report added that unemployment rate was higher in urban area at 7.8 percent than the rural area at 5.3 percent. According to the NSSO report, there was a significant decline in the labour force participation rate (LFPR). As per the NSSO survey, in 2011-12, the unemployment rate was at 2.2 percent.
"The findings of the report holds significance as this is the first comprehensive survey on employment conducted by a government agency after Prime Minister Narendra Modi announced demonetisation of high-valued-currency notes in November 2016," the Business Standard reported.
The NSSO employment report is at the centre of a controversy concerning two independent members of the National Statistical Commission (NSC) quitting over the non-release of job figures,
NSC Not Taken Seriously By Government
Two external members, PC Mohanan, acting chairman, and JV Meenakshi, of the National Statistical Commission (NSC) had resigned earlier this week over disagreement with the government on certain issues
Mohanan, cited delays in the release of the National Sample Survey Office's (NSSO) report on employment as one of the reasons for his decision to resign. Mohanan alleged that the Ministry of Statistics and Programme Implementation (MoSPI) released major data without getting the commission's approval, a practice against the guidelines.
“As per the guidelines of the ministry for conduct of census and surveys, the commission’s approval is required for any major statistical census or surveys and the ministry has gone ahead and announced major survey census like economic census without referring to the commission. So there are incidences like this and I do not want to go into every case," he said.
Referring to the issues concerning labour force survey, which is conducted by the NSSO under Ministry of Statistics and Programme Implementation (MoSPI), it said: "NSSO is processing the quarterly data for the period, July 2017 to December 2018, and the report will be released thereafter."
It further said in view of India's strong demographic dividend and around 93 percent of the informal workforce, it is important to improve measures of employment through administrative statistics and complemented by periodic surveys.

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