Reuters Poll: Unemployment Tops Concerns in World's Fastest-Growing Economy

A recent Reuters poll has revealed that unemployment is the biggest concern among citizens in India, the world's fastest-growing economy. The poll results emphasize the challenges the country faces in generating sufficient employment opportunities for its expanding young population, despite its rapid economic growth.

According to the poll, conducted ahead of the upcoming elections, 15 out of 26 economists identified unemployment as the primary issue confronting the government post-election. The findings stress the pressing need for comprehensive strategies to boost job creation and harness India's demographic potential.

Government data from various sources, including the Periodic Labour Force Survey (PLFS), Employee Provident Fund Organisation (EPFO), and National Career Services (NCS) portal, indicates positive trends in employment over the past six years. The PLFS data shows that the unemployment rate has declined from 6% in 2017-18 to 3.2% in 2022-23, with improvements observed in both rural and urban areas, as well as among females and youth.

The EPFO has also witnessed a significant increase in new members, with 6.1 crore individuals joining the fold over the last six years. Additionally, the NCS portal has seen a surge in job vacancies, particularly in sectors such as finance, insurance, construction, and IT.

The government has implemented various initiatives and schemes to generate employment opportunities, including the Pradhan Mantri Mudra Yojana, Atmanirbhar Bharat Rojgar Yojana, and other flagship programs. These efforts have contributed to job creation and the overall positive employment trend.

Why this matters: The poll findings emphasize the critical importance of addressing unemployment in India, as the country seeks to leverage its demographic advantage and ensure inclusive growth. Failure to generate adequate employment opportunities could lead to social and economic challenges, making it imperative for policymakers to prioritize job creation strategies.

Despite the encouraging signs in employment data, economists warn that sustaining the growth witnessed in the previous year may present challenges due to fiscal constraints. Inflation also remains a focal point, with consumer price inflation projected to average 4.5% over the current and subsequent fiscal years. However, a significant portion of economists express concerns that inflationary pressures may exceed current projections.

Key Takeaways

• Unemployment is the biggest concern for citizens in India's fast-growing economy.
• Govt data shows declining unemployment rate, but economists warn of challenges ahead.
• Govt initiatives like Mudra Yojana, Atmanirbhar Bharat Rojgar Yojana aim to boost job creation.
• Sustaining job growth may be difficult due to fiscal constraints and high inflation.
• Economists express concerns that inflation may exceed current projections.