How Scary Is The Unemployment Rate Of India

Earning a living is the most essential for the people to survive. It applies

to every person whether he or she is rich or poor. The source of income

shall determine the ways of fulfilling the individual needs and the

requirements of the family. A job or business is the means of income all

around the globe. Everyone has their own preferences for ways to earn

a living. But when this means is in scarcity, this can be alarming for the

people of that region. Unfortunately, the data showing the

employment opportunities graph in India is not encouraging and is a

matter of big concern.

The unemployment rate in India is significantly increased according to

the data released Centre for Monitoring Indian Economy (CMIE). The

report states that the unemployment rate has risen by 7.2 % until

February 2019, which is the highest ever since September 2016. There

has been a spike in the number of job seekers from different fields and

also the labors who are looking for opportunities for a new job. But

what lead to this chaotic increase of jobseekers and why there is a

scarcity of employment opportunities in the market. In a layman’s

term, without going to the statistical chart, let’s study the gap of the

overwhelming supply of workforce and less demand or opportunities

for them.

First, we need to analyze that is the status of the unemployment rate is

that scary? Secondly why there is lack of new options of jobs and where

are the surge job seekers coming from. It is a fact that even though

promising, the GDP of India did not rise to a satisfactory number

despite opening new avenues for FDI and other industries.

Secondly, the NDA government or the previous UPA government did

not render any tax benefits for the new investors to establish their

business in India. As the profit margin gets narrow, investors from

abroad show little or no interest in setting up their business in India.

The stricter norms of taxation, duties, and cess are keeping the

companies away.

The existing companies are reeling under the extra burden of taxation

from the government, which is not making an ideal ambiance for

expansion of business for them. Since no new business is being set up

or expansion is taking place, the demand for the workforce is relatively

less.

Demonetization was a monumental decision for curbing black money

and controlling the counterfeit currency, but it also broke the back of

many indigenous small scale industries. As a result, many businesses

had to shut down because of the overnight termination of 1000 and

500 rupee note that created a cash crunch and made it impossible to

run the show.

Retail giants like Amazon and Flipkart halted their expansion plans with

the new regulations of the government for the e-commerce industry.

The retail sector also did not see any progress as excise duty was levied

on many electronic items, making them costlier than before. A similar

thing also occurred in the auto sector as well, which in turn hurt the

hiring plans of the company.

On the government part, there are thousands of vacant posts available

in various departments of government-run establishments like railways,

police, and other PSU companies. But, the government is now in no

 mood for filling up those vacancies, which are also creating the job

crunch.

It is also a fact the every year thousands of students are getting passed

out from different universities and institutions which are adding to the

list of job aspirants. Therefore, if the government does not take any

firm step, soon, the situation can become extremely chaotic. Thus, it is

imperative for the current government to create new opportunities of

employment by improving the industrial and business sector, making a

resolve for this burning issue.

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