A report from rating agency CARE, released early this week, revealed that India’s employment scenario is not looking good. It said job growth in corporate India moderated to 3.8 percent in fiscal year 2018, from 4.2 percent in the previous fiscal and the problem is most severe with smaller companies.
The report, based on an analysis of over 1,600 corporates, said smaller companies with net sales of less than Rs 500 crore have witnessed a contraction in employment growth, while larger companies with over Rs 500 crore sales had a positive employment growth in 2017-18.
This comes on the heels of GDP growth projections, both by global and domestic agencies, placing India at the top of the world growth chart and is giving us goosebumps with the thought that once again India is set to beat China on growth rate. But the fact is GDP figures do not make much sense to the common man if there aren’t enough jobs to go around. Even worse, if the jobs are not generated with sufficient pace in smaller companies, as the CARE survey says. Because that’s where the majority in the economy of 1.3 billion people are employed. The CARE figures confirm the fears of a jobless growth in the economy, which is a political setback for Narendra Modi who is set to seek the public’s mandate in less than eight months from now.
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