As GDP growth loses steam, unemployment up 10% in 2 yrs

Former chief statistician Pronab Sen says slow pace of growth has led to a rise in joblessness, but it is not huge

In what could lend ammunition to those criticising the government's so-called jobless growth model, unemployment in India had risen 10.2 per cent in two years, official data showed today. Compared with 9.8 million on January 1, 2010, 10.8 million people were without any job on January 1, 2012.

Some analysts said, the rise in unemployment was the reflection of a sharp drop in the rate of GDP growth, which plunged to 6.2 per cent in 2011-12 and further to a decade low of five per cent in 2012-13.

The data were part of a report released by the National Sample Survey Organisation (NSSO) here.

However, analysts said, the unemployment data were collated on the basis of a person's primary area of activity, as well as his other optional works. So, the number of jobless people could be higher if only the prime activity was taken into account.

This argument is clear from the report. It shows the unemployment rate rose 0.2 percentage points to 2.7 per cent in 2011-12 (July-June), against 2.5 per cent in 2009-10. The data are based on principal activity that people were engaged in during the period. However, if their other activities are included, the unemployment rate stands at 2.2 per cent, compared with two per cent in the same period. Here, too, the rise is of 0.2 percentage points. But the unemployment rate has fallen to 2.2 per cent during 2011-12, against 2.7 per cent if only primary activity is taken into account.

National Statistical Commission Chairman Pronab Sen said deceleration in growth had led to a rise in unemployment, but it was not huge.