50 lakh men rendered jobless post note ban, says report

New Delhi: Fifty lakh men have been rendered jobless in the last two years since November 2016, when Prime Minister Narendra Modi announced an overnight ban on high-value currency, says a new report.

The timing of the start of the decline in jobs coincides with demonetisation but no “causal link” can be set based on the accessible data, says the “State of Working India 2019”, released Tuesday by the Centre for Sustainable Employment, Azim Premji University, Bengaluru.

The job losses are higher when women are taken into account.

“Whether or not this slump was caused by demonetisation, it is definitely a cause for worry and calls for urgent policy intervention,” the report says.

The report says unemployment, in general, has risen steadily after 2011 and the higher educated and the young are vastly over-represented among the unemployed.

The researchers have noted that India’s jobless are mostly the higher educated and the young. Among urban women, graduates are 10 percent of the working age population but 34 percent of the unemployed.

The age group 20-24 years is hugely over-represented among the unemployed. Among urban men, for instance, this age group accounts for 13.5 percent of the working age population but 60 percent of the unemployed.

Less educated workers have also seen job losses

In addition to rising open unemployment among the higher educated, the less educated (and likely, informal) workers have also seen job losses and reduced work opportunities since 2016.

Women are much worse affected than men. They have higher unemployment rates as well as lower labour force participation rates, SWI 2019 reported.

Among urban women, graduates are 10 percent of the working age population but 34 percent of the unemployed, whereas, graduates form only a small 3.2 percent of the working age population among rural women, but they make up 24 percent of the unemployed.