Employment during this recession
Indian unemployment has been always one of the most critical issue of our country. But in the current scenario of economy, it is set on fire.
India is experiencing a big economic slowdown where GDP is expanding at the rate of 4.5% which is marked to be the lowest in six and half years. Many industries are facing serious fall in their sales. Gross value added reveals that six of the eight sectors posted decelerations from the fiscal first quarter. Industries like Automobile, consumer durables, real estate were largely in the news. Contraction of 12.4 % was reported in output of electricity because there is lack of demand for power at factories. This Lack of demand of power is induced by the lack of consumption in the economy. Such a situation in the economy is leading to fear of unemployment among people . Recently, National statistical office data reported that a hike in private final consumption expenditure from 3.1% to 5.1%. But this hike can largely be attributed to the festive season - Dhanteras and Diwali. Therefore sustainability is questioned and fear of unemployment can't be thrown out of individual’s mind. Then, Looking at the education sector, professors of Delhi University are on the strike against the notification regarding non renewal of adhoc professors contract and appointment of guest teachers in fear of losing jobs.
As a whole, economy is facing serious problem of unemployment. Government and RBI attempts to get some control over this recession through corporate tax rate cuts, repo rate cuts doesn't seem to be working in a right direction. Companies can retain the gains from tax cuts for contingencies. Lack of confidence in the economy can constrain them to pick up new projects and investments. Many experts suggests
the need of policy reforms in the economy to boost investments and revive demand to come out of the problem as these two are the key challengs. Many cuts in tax rates doesn't seem to be working because of inability of chanelising it to customers. RBi finally asked all the banks to link their retail loan products with repo rates from 1st October. .Further, a confidence needs to be developed in the consumers and producers to enable them to participate in the market with full spirit.