India’s Unemployment Rate Jumped to 6.9% Post Demonetization

The center for monitoring Indian Economy recently reported that the country’s employment rate jumped to nearly 6.9% this October, which is the highest since January 2016.

According to the reports, around 397 million adults were recorded to be employed by October 2018. This number is lower than 407 million which was recorded during the same time period last year. This means around 10 million adults have lost their employment in just one year throughout the country.

Furthermore, the report goes on to add that labor participation rate which is the measure of adults willing to work has dipped from around 48 percent to around 42.4 percent in the last two years after demonetization.

Demonetization was an extreme measure brought by present BJP government in the center to curb elevated levels of black money in the country. However, this measure proved to be of little help and ended up ruining the country’s overall growth and employment. Also, the measure has severely failed to curb the circulation of black money, which was one of its prime objectives.

The report also made it clear that the number of individuals who were actively seeking employment opportunities has also increased in the last one year. Approximately, 29.5 million unemployed individuals are actively seeking new job opportunities this year. This number was at 21.9 million in the same time period last year.