DAILY NEWS ANALYSIS

GS-III : Economic Issues Unemployment

15 May, 2021
2 Min Read

Rising Unemployment and Need for Domestic Demand

Rising Unemployment and Need for Domestic Demand

Unemployment

Rising unemployment, including among the salaried class, and shrinking real incomes have led to a lack of demand that bodes ill forthe economy, said Mahesh Vyas, managing director at the Centre for Monitoring Indian Economy (CMIE).
Unemployment rose to8% in April, from 6.5% in March, the CMIE said.

Labour participation rate

Labour participation rate recovered soon after the lockdown was eased last year, but has run out of momentum even before it could recover fully.
The labour participation rate(LPR) was 40% in April. “The LPR is about two percentage points below what it was before April 2020.
This is a very serious matter for a population of our size. Post-lockdown recovery Observing that the economy had recovered after the lockdowns were eased in2020, CMIE said, “All supply-side indicators saw a robust turnaround.

Need to push up Demand

But where is the demand? ”Asserting that the lack of demand was a bottleneck for further growth, CMIE said, “Income and consumer sentiment have also been hit.
Income is lower than it was year earlier. 90% of families have seen income shrinkage (i.e., real income, adjusted for inflation).”
Domestic demand is key. “We can’t depend on exports. It is domestic consumption that will help the economy,” Mr. Vyas, CMIE director said, adding that it was critical to put money in the hands of the consumer now.
Significantly, the size of the salaried class shrank forthe third consecutive month in April, with 3.4 million jobs lost.
During 2019-20, there were 85.9 million salaried jobs.
As of April2021, there were just 73.3million, as per CMIE observations.

Source: TH

Join Our Telegram

Voice clone-AI

Pradhan Mantri Suryodaya Yojana

06 Feb, 24
SHARE

Recently, Prime Minister announced Pradhan Mantri Suryodaya Yojana under which 1 crore households will get rooftop solar power systems. India’s Status of Current Solar Capacity India currently stands at 4th place globally in solar power capacity. As per Ministry of New an

Foreign Contribution Regulation Act (FCRA)- NGO

06 Feb, 24
SHARE

The Foreign Contribution Regulation Act, 2010 (FCRA) registration of two prominent non-governmental organisations (NGOs) — Centre for Policy Research (CPR) and World Vision India (WVI) have been cancelled this month. What is FCRA? Key provisions of FCRA, 2010 Key aspects Description

Voice clone-AI

06 Feb, 24
SHARE

Voice clone fraud has been on the rise in India. AI voice cloning – It is the process of creating a synthetic replica of a person’s voice through machine learning and speech synthesis technology.It is called as voice deepfakesor audio deepfakes. Objective – To achieve a high level of na

Science communication- how to promote

06 Feb, 24
SHARE

Steps taken by India to promote Science Communication Publications and Information Directorate (PID) - An organisation under Council of Science and Industrial Research (CSIR) established in 1951 for publishing and disseminating scientific information in India. National science magazines- The PI

Universal Basic Income (UBI)- Analysis

05 Feb, 24
SHARE

Universal Basic Income (UBI) can strengthen welfare architecture and unlock the nation’s latent demographic potential. UBI - It is an income support mechanism typically intended to reach all or a very large portion of the population regardless of their earnings or employment status. Objective- To provide enough to co

Quick Links Testimonials FAQ

Crash Course

Regular Modules 2024

Mains

Optional

Rising Unemployment and Need for Domestic Demand

Pradhan Mantri Suryodaya Yojana

Foreign Contribution Regulation Act (FCRA)- NGO

Voice clone-AI

Science communication- how to promote

Universal Basic Income (UBI)- Analysis

DNA

06 Feb,2024

GS-III

PT Pickups

Toppers

Search By Date

Top Editorials

UPSC Courses

Saarthi Mentorship Programme

Important Tags

Articles:Geography And Environment

Articles: History Culture Society

Articles: Governance & National Issues

Articles: IR & IO

Articles: Economic Development & Economic Issues

Articles: S&T Internal Security

Articles: Ethics & Others

Articles: Others

Newsletter Subscription

SMS Alerts

Important Links