Unemployment Rate at 6.9%, Highest Since Demonetisaion: Study

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People queue outside a bank to withdraw cash and deposit their old high denomination banknotes in Mumbai, India, December 2, 2016. REUTERS/Danish Siddiqui/File Photo

Caravan News

NEW DELHI—  While Prime Minister Narendra Modi’s government is still calling its decision of demonetisation beneficial for the country’s economy, a latest economic report has revealed that it has severely hit the employment generation with unemployment rate at 6.9% in October 2018 which is highest in last two years.

Centre for Monitoring Indian Economy (CMIE) data shows that the Labour Participation Rate (LPR) has been worst in the last two years in proportion to the adults willing to work. It has felt down to 42.4%, the lowest since January 2016, CMIE said.

LPR, a measure of the proportion of adults who are willing to work, was the lowest witnessed since January 2016 while it was around 48% before demonetization.

“Labour participation rate fell sharply after demonetization,” CMIE said in its report. Report suggested that the participation rate that fell sharply after demonetization has still not recovered yet.

CMIE analytics showed that the estimated number of people employed during October 2018 was 397 million which is 2.4% lower than that employed in October 2017 when 407 million got jobs. It said that the count of unemployed persons have doubled to 29.5 million in this October from 14 million in July 2017.

“This sharp fall in the employment rate in October perhaps the most worrisome measure of the labour markets.” CMIE stated adding that only 39.5% adults were employed in October.

In the night of 8th November, 2016, PM Modi had made formal announcement on national TV about banning old currency notes of Rs 1000/- and Rs 500/- and declared three major objectives behind the move — to curb corruption, black money and stop terrorism.

Opposition Attacks Modi Govt. On 2nd Anniversary of Demonetisation

On the second anniversary of demonetisation, the opposition blamed PM Modi’s decision to havoc the Indian economy.

Congress president Rahul Gandhi Tweeted: “Note ban was a pre-planned conspiracy. This scam was a scheme to give benefit to Prime Minister’s suited-booted friends. Nothing was innocent in this scandal. To take out any other meaning of this step is the insult of the nation.”

Communist Party of India (Marxist) tweeted: “’Where are our promised jobs’ – the question that will haunt Modi in the coming months.”

“Two years ago, RBI had stated the facts about Demonetisation to the govt. Yet, Modi continued to mislead us all. He must now come clean on why he pushed India’s Economy downhill. What was the real reason?” general secretary of CPI(M), Sitaram Yechury tweeted.

Trinamool Congress head and West Bengal’s chief minister Mamata Banerjee said that the government cheated the nation with this big #DeMonetisation scam which has ruined the economy and the lives of millions.

Taking a jibe Samajwadi Party president Akhilesh Yadav said Modi had asked 50 days for proving the benefits of note ban to the people but it has been 2 years and people are still waiting for his reply on who benefitted by demonetisation.

“He had asked for 50 days and 2 years completed but people still waiting to know what was achieved except ruining small businesses and increasing unemployment? If the government considers it a success then it should tell who got its benefits?”

Demanding an apology from PM Modi, Bahujan Samaj Party (BSP) supremo Mayawati said, “Facts and data prove that the nation and its people have suffered the hasty decision of demonetization and that like its other poll promises this too was a bundle of lie.”

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