Unemployment in India on the rise, rural women worst hit

June 21, 2013

Unemployment_in_India

New Delhi, Jun 21: Between 2009-10 and 2011-12, the proportion of people working slipped slightly in India, and the share of unemployed persons ticked up, a government report released on Thursday has revealed. In 2009-10, 36.5% of the population was gainfully employed for the better part of the year. By 2011-12, the proportion of such workers had dipped to 35.4%. Meanwhile the unemployment rate went up from 2.5% to 2.7%.

These findings form the crux of a survey on employment and unemployment carried out by the National Sample Survey Organisation (NSSO). The survey covered over one lakh households and was carried out between July 2011 and June 2012.

The pan-India figures hide a deepening chasm between job opportunities for men and women. While the share of employed men remained roughly constant between 2009 and 2012, women's employment dropped from 18% to 16%.

This may appear a small decline, but when translated into real numbers, the crisis in employment is stark. In rural areas, about 90 lakh women lost their jobs in the two-year period. This would have been catastrophic but for the fact that in urban areas about 35 lakh women were added to the workforce.

Men joined the workforce in both urban and rural areas, though they got many more opportunities in towns and cities than in rural areas. Men's participation in the workforce jumped from 99 million to 108 million in urban areas and from 228 million to 231 million in rural areas.

Kerala had the highest unemployment rate of close to 10% among larger states. West Bengal (4.5%) and Assam (4.3%) were other large states with relatively high unemployment rates. Among the smaller states, Nagaland had a staggering jobless rate of 27%, but this may be compromised data as surveys are difficult in strife-torn areas. Tripura, another north-eastern state, but relatively more peaceful, too had a high unemployment rate of over 15%.

The NSSO report also contains striking information on daily wage rates of casual labourers and regular or salaried employees. Wages given to casual labourers in the government's job guarantee program (MGNREGS) were lower than similar work elsewhere and more than a third lower than other types of casual work. In the job guarantee scheme, male workers were getting an average of Rs 112.46 per day, while in non-MGNREGS public works the rate was Rs 127.39. In non-public works wages stood at Rs 149.32. For women, the average was more similar at about Rs 102-110, though lower than men for the same work. This appears to go against a widely held belief that MGNREGS wage rates are setting the standard for all other wages in rural areas.

The wide difference in wage rates in urban and rural areas explains why people are migrating from their homes to live in cities to earn a living. A male casual laborer earned about Rs 150 per day in rural areas, but his urban counterpart got Rs 180 a day. Similarly, a salaried employee could earn about Rs 300 per day in rural areas but in urban areas the daily earning would shoot up to nearly Rs 450.

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Agencies
May 31,2020

New Delhi, May 31: India registered its highest single-day spike of COVID-19 cases on Sunday with 8,380 new infections reported in the last 24 hours, taking the country's tally to 1,82,143, while the death toll rose to 5,164, according to the Union Health Ministry.

The number of active COVID-19 cases stood to 89,995, while 86,983 people have recovered and one patient has migrated, it said.

"Thus, around 47.75 per cent patients have recovered so far," a senior health ministry official said.

The total confirmed cases include foreigners.

The death toll has gone up by 193 since Saturday morning, of which 99 were from Maharashtra, 27 from Gujarat, 18 from Delhi, nine each from Madhya Pradesh and Rajasthan, seven from West Bengal, six each from Tamil Nadu and Telangana, five in Bihar, three from Uttar Pradesh, two from Punjab, and one each from Haryana and Kerala.

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Agencies
March 6,2020

New Delhi, Mar 6: After Yes Bank was placed under moratorium, digital payments were impacted as PhonePe, which depends on the cash-strapped lender for its transactions, could not operate.

It can be noted that the bank's own net banking facilities have not been operational since last evening. Other fintech operators who rely on Yes Bank to settle their transactions are also down.  “We sincerely regret the long outage. Our partner bank (Yes Bank) was placed under moratorium by RBI. Entire team's been working all night to get services back up asap (as soon as possible),” the app's chief executive Sameer Nigam tweeted early in the morning.

PhonePe, one of the country's largest digital payment platforms, is dependent on Yes Bank to process its transactions.

He added that the app hopes to be live in a “few hours”.

Yes Bank placed under a moratorium Thursday evening, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.

Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

For the next month, Yes Bank will led by the RBI-appointed administrator Prashant Kumar, an ex-chief financial officer of SBI.

He added that the app - one of the most popular interfaces for UPI transactions - hopes to be live in a “few hours”.

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News Network
July 16,2020

New Delhi, Jul 16: With India's economic growth sputtering, the Reserve Bank of India was expected to maintain a rate-cutting cycle, but an uptick in near-term inflation could give the central bank's Monetary Policy Committee reason to pause for now.

Having cut its key lending rate by an aggressive 115 basis points (bps) in 2020, on top of 135 bps cuts in 2019, the RBI so far has had little success in spurring credit growth amid varying degrees of lockdowns across India.

Some economists and market insiders argue it may be prudent for the MPC, the policy committee, to hold its fire when it meets early next month.

"It's probably too early to administer a demand stimulus. The RBI still has room to cut rates, but we probably want to be more cautious of the timing," said Venkat Pasupuleti, portfolio manager at Dalton Investments.

"Maybe they should wait a quarter to see how things pan out once the lockdown situation is eased further."

Market participants have factored in at least a 25 bps rate cut by the MPC on August 6 while analysts are predicting a total 50-75 bps cuts over the rest of the fiscal year that runs to March 31.

The spike in the retail inflation rate above the RBI's mandated 2%-4% target range is another reason for the central bank to take a breather, analysts say.

Annual retail inflation rose to 6.09% in June, compared to 5.84% in March and sharply above a 5.30% median forecast in a Reuters poll of economists.

Rahul Bajoria, an economist at Barclays, said the spike in both consumer and wholesale prices "could lead to a tempering in enthusiasm for material front-loaded policy support from here on."

Almost all economists however agreed the RBI cannot move away from its accommodative stance or call an end to the rate cutting cycle just yet.

India's economy grew at 3.1% in the March quarter - an eight year low - and some economists have predicted a contraction of more than 20% in the June quarter and a contraction of up to 5% in the fiscal year.

"Even in the event of a pause, we think the RBI and MPC would want to hold out the promise of more cuts," said A. Prasanna, economist with ICICI Securities.

RBI Governor Shaktikanta Das said in a recent speech the need of the hour is to restore confidence, preserve financial stability, revive growth and recover stronger, suggesting inflation concerns are unlikely to deter the downward trajectory for rates too soon.

"The August policy decision would boil down to a judgment call over whether RBI can maintain easy monetary and financial conditions without the aid of a token rate cut," Prasanna said. 

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