News on the economic front has mostly been positive since September last year. Parameters like GST collections, corporate results, electricity consumption, etc. have been showing a sharp recovery since April and May 2020 when the full-blown impact of the lockdown was being felt. Employment though, has followed a different trajectory as per data put out by the Centre for Monitoring Indian Economy.
CMIE puts out weekly job data and it’s CEO and Managing Director Mahesh Vyas tells ET Now that while there has been a tremendous recovery since April 2020 when employment dropped to 280 million from an average of 405 million a year ago, that recovery has been sliding gradually since September.
“There has actually been a deterioration in employment generation this quarter”, says Vyas who puts down the drop in numbers in part to a reduction in agricultural employment due to the sowing season-ending.
Jobs had peaked in September at 398 million as per CMIE data and are down to 389 million in December. While employment is not rebounding, other facets of the economy are on a roll. Stock markets are booming, IT companies are reporting their best results in years and car sales have rebounded. “If the economy is booming without jobs, then it is a no brainer that this growth is going to cause huge income inequality”, warns Vyas.
Source: ET Now News
