Among the most difficult problems that both developed and developing countries have to cope with is the growing number of young people without work.
The incapacity to integrate people into the workforce has wider implications for the future growth and advancement of nations. As a result, the international development agenda places a significant priority on employment and unemployment.
In emerging nations such as India, the relationship between unemployment and poverty is often a contentious issue.
The overall unemployment rate in India decreased last month, providing a brief reprieve for the government. This decline was mostly caused by a rise in the need for agricultural work in rural regions as the monsoon season got underway.
As to a Bloomberg article that used statistics from the Centre for Monitoring Indian Economy (CMIE) for the month of July, the overall unemployment rate decreased to 7.95% in July from 8.45% in June.
The whole nation has been affected by the seasonal monsoon rains, which is crucial since it irrigates about half of the nation’s agricultural area, raising hopes for increased agricultural output and promoting economic expansion. Thus far this season, the seasonal monsoon rainfall has exceeded the average by 4%.
According to Bloomberg, Mahesh Vyas, managing director of CMIE, while the agriculture sector experienced activity with increased rainfall, the need for labour from the rural non-farm sector decreased in July. “This led to a fall in rural labour seeking employment, which in turn led to a fall in the rural employment rate.”
The figures indicated a five million decline in the labour force in rural India. The decline in the labour force participation rate in metropolitan regions suggests a more widespread economic malaise.
As he runs for a remarkable third term in government in the national elections next year, Prime Minister Narendra Modi must provide a sufficient number of employment for Indians.
In the midst of widespread dissatisfaction about increasing unemployment, his administration is sending out appointment letters as part of a pledge to create one million government positions by the end of this year.
