The unemployment rate in India and Indian GDP

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Currently, in 2020, the corona epidemic is going on all over the world. And in the world, after the USA, India has the highest number of Corona cases. Corona cases had started coming in from March in India. The government declared a lockdown to stop the corona spread. The economy slowed down due to the lockdown, and people lost their jobs.

Unemployment In India 2020:

The problem of unemployment has been seen in India for many years. India lags behind many countries in terms of employment. Now there is a huge unemployment problem and question in India after the Corona epidemic. According to CMIE, In the period of Lockdown, 12 crore Indians lost their jobs in April.

As per CMIE reports (Aug 2020), the URBAN Unemployment rate is 9.83% and Rural 7.65%. And If we see the past month, April, the Unemployment rate was Urban 24.95% and Rural 22.89%

MONTHRURALURBAN
Aug 20207.659.83
Jul 20206.519.37
Jun 20209.4911.68
May 202021.1123.14
Apr 202022.8924.95
Mar 20208.449.41
Feb 20207.348.65
Jan 20206.069.70
Unemployment Rate (%)

Why unemployment in India?

GDP Growth Rate:

What is GDP? Gross Domestic Product (GDP) is the total value of all goods and services produced in a given year. GDP data shows the country’s pace and slowing. From this data, it is understood that in which sector there is a boom and slow down, it also shows how well and average the economy has performed over the year. There has been a substantial decline in GDP Q1, mostly due to the lockdown. Consumer spending, domestic and international investment also declined in the initial months of this year. 

India saw such the lowest GDP growth for the first time. It was estimated to fall by 18 percent, but GDP has declined even more. This is the biggest decline in India’s economic system since 1996. This time India’s GDP data is shown as -23.9% (APR-JUN).

World Wide GDP Data:

G7 Countries GDP

Most countries have seen a decline in their growth rate. Like Britain -20.4, France -13.8, Italy 12.4%, Canada -12%, Germany -10.1%, America -9.5% ,and Japan -7.6%.

Indian GDP And Employment 2020-21:

We can say that a low GDP growth rate means the country’s income is decreasing. Due to the decrease in GDP rates, It reduce speed of getting a new employments. In such a situation, you can see how much unemployment is in India. And those who are working (employees) can also have a bad effect on their job, which means they may be lost their jobs due to the these types of situations.

Most people come to live in cities in search of employment. In cities, Normal times most of the construction, industries, manufacturers, and service sectors are mostly employed. It was closed for a long time due to the corona epidemic and lockdown. Some companies have already started, but many sectors are not fully operational like hotels, travel & tourism, and many companies have not many contracts, so they can’t provide more employment.

The government should formulate a policy whereby the public has the capacity to make purchases. If purchasing power increases then production will increase, and production increase then employment will also increase.

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