Knowledge report on jobs: 3.64 crore people unemployed in 7 major sectors of the country in 5 years, 7.1% unemployment rate

• 5.3 crore new jobs may come next 5 years, government measures and GDP improvement will change the situation.
• 1.2 crore people want jobs every year, read government’s biggest challenge before budget- report on jobs

In the budget, everyone’s eyes are on what the government tries to do to slow down the economy and increase jobs. Meanwhile, according to a recent report, the unemployment rate in the country has reached a high of 7.1 percent. In such a situation, Bhaskar went through experts from different sectors, industry bodies and government reports about the state of jobs in the country.

Research revealed that in the last five years, 3.64 crore jobs have gone to only 7 major sectors. These include direct and indirect employment. The textile sector accounts for the maximum of 3.5 crore jobs. However, the good news is that more than 53 million new jobs will come in the next five years, amidst the government effort and the expectation of GDP growth.

Rahul Mehta, chief patron of the Clothing Manufacturers Association of India, says that about 3.5 crore people have been unemployed in the textile sector in the last five years due to different reasons. However, the situation is improving now and in the next 5 years, the same number of new jobs will come. On the other hand, Deputy Chairman of NITI Aayog, Rajiv Kumar says that there is no such thing as job loss in the country. The pace of new job growth has slowed down a bit. The central government has increased spending on infrastructure. Investment will also increase. This will bring jobs.

Rituparna Chakraborty, co-founder of TeamLease, a leading job provider of the country, said that there are certain jobs in the telecom, auto, mobile, infra, gems and jewelery and construction sectors in the country but it is difficult to say how much. RC Bhargava, chairman of Maruti Suzuki India, says the job is cyclical. For example, if a car is sold, then about 5 people get employment through car drivers, petrol, spare parts, insurance etc.We make 15–16 lakh cars per year. It is expected that employment will increase.

Worst condition in textile sector, but new job rate is also high here

• Jobs gone: 3.5 crore
• Reason: global recession, rising cost of production, low cost business in Bangladesh, expensive labor and cost in the country.
• Reform Efforts: The Ministry of Textiles has made a guideline in the National Textile Policy that by 2024-25, we will export $ 300 billion worth of textiles. The use of new technology will increase, which will reduce costs.
• What will be the impact: Recovery fastest. Expect 3.5 million new jobs in five years.

Gem & Jewelery

• Jobs Gone: 5 Lakhs
• Reason: Increased price of gold, higher custom duty on gold import, people are buying gold from abroad, strict on cash purchase.
• Efforts to improve: The government is training 10,000 artisans every year under the Gem and Jewelery Skill Council of India program. The new Gem Jewelery Park is being built. Expected to reduce custom duty in the budget.
• What will be the impact: if GDP increases and rupee is strong then 25 lakh new jobs will come.

Automobiles

• Jobs Gone: 2.30 Lakh
• Reason: Sales fell before BS-6 vehicles arrived. July-2019 was the worst phase in 19 years. Also cause automation.
• Reform Efforts: Reduced Corporate Tax. BS-4 vehicles will be registered for life time. Announced the reopening of government procurement. Doubled the depreciation of vehicles.
• What will be the impact: Electric vehicles and BS-6 implementation can increase employment.

Banking

• Jobs Gone: 3.15 Lakh
• Reason: The number of branches has decreased due to merger of public sector banks. Workers also lost due to automation.
• Reform efforts: The government has allowed payment banks to operate. There is an effort to increase the demand of people skilled in Artificial Intelligence, Robotics and Risk Management. Decrease in NPA will improve the condition.
• What will be the impact: 5-6 lakh new jobs will come. The sector is still growing rapidly.

Telecom

• Jobs gone: 90 thousand Reason: Loss increased due to price war. Only 3 private companies survived. Idea-Vodafone merged. In trouble with AGR dues of Rs 1.47 lakh crore.
• Efforts for reform: Companies are constantly asking the government to give them two years for the AGR amount. They have also sought other reliefs.
• What will happen: Jobs can increase due to AI, Big Data and 5G.

Real Estate

• Jobs Gone: 2.7 Lakh
• Reason: The situation worsened after demonetisation. After the introduction of laws like GST and RERA, the trouble increased in the early times.
• Efforts to improve: Government will help 25 thousand crores for the stranded project. The government has given tax rebates benefits to buyers. SEBI enforced the rules. 1.25 lakh crore in 5 years Can come.
• What will be the impact: 1.5 crore new jobs can come within the next 5 years.

Aviation

• Jobs gone: 20 thousand
• The reason: Jet Airways has lost 15,000 jobs. The closure of Kingfisher has also led to 5,000 jobs.
• Efforts for reform: It is believed that the government will invest 35 thousand crore rupees in the next four to five years to revive the sector. New FDI will come. 100 new aircraft will join the fleet.
• What will be the impact: Increasing investment and demand in the sector will bring 20 thousand new jobs.

Claims of job loss even in these reports

• 26% new jobs were reduced: Based on the data of EPFO ​​in April 2019, it was said that between September 2017 to February 2019 only 4,49,261 new jobs were received. 26% new jobs were reduced in 6 months.
• 10 million jobs lost in a year: According to the CMIE report, in December 2017, there were 40.79 crore jobs in the country. Whereas in December 2018 the figure came down to 39.7 crores.
• 16 lakh jobs to be reduced: SBI report says that 89.7 lakh new jobs were created in 2018-19. Whereas in the current financial year 2019-20 it is estimated that 16 lakh less jobs will be created.