Job scenario to get better in 2020, but optimism at 6-year low

In the past two years, the Narendra Modi-led government has been facing huge challenge in creating new jobs as the economy has been slowing quarter after quarter. The GDP growth plummeted to over six-year low in the July-September quarter to 4.5 percent, making the task of job creation even more difficult.

In case the government fails to create new jobs and ensure the current employment level, it may lose the trust of the youth who are supposed to be one of its core constituencies.

The unemployment rate in 2017-18 was 6.1 percent, almost a 45-year high. The job scenario may not have improved much since as most macro indicators have been either in negative zone or increased only marginally.

The slowdown-hit auto sector alone is estimated to have seen millions of job losses in the past one year. Textile, housing and telecom are among other key sectors which have witnessed retrenchments.

With the government taking a slew of measures to accelerate growth and investment, the job scenario could improve in the coming months. Following the festive months of October and November, sectors like automobile and consumer durables have shown marginal improvement in sales.

Meanwhile, the Centre has lined up infrastructure projects worth Rs 102 lakh crore across various sectors, hoping that it will push economic growth and create new jobs.