10.1 lakh Casual Job Loss since Demonetization!

The economic performance of the incumbent in terms of employment creation has long been put to a doubt as India’s growth trajectory is being seen as a jobless one. The demonetization and GST have been instrumental in job loss.

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10.1 lakh Casual Job Loss since Demonetization!
10.1 lakh Casual Job Loss since Demonetization!
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While the government is struggling to fix earnings more through GST, eight sectors of the economy continue shrinking months after the demonetization. Quarterly Report on Employment Scenario from the Labor Bureau shows that casual jobs have been affected most in post demonetization and post GST period.

The casual employment has shrunk by 28 percent in the period ending 1 April 2017 and 10 percent lower in the period ending on 1 January 2018.

The sectors that have been affected are manufacturing, construction, trade, transportation, hospitality, information technology and business process outsourcing, education, and healthcare.

There has been 10.1 lakh people employed on casual basis in the eight sectors as on 1 April 2016, according to the first quarterly employment scenario report.  By 1 July 2017, the casual employment in those eight sectors was reduced to 7.25 lakh.

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Between 1 October 2016 and 1 January 2017, there was a loss of 1.52 lakh casual jobs.  The biggest driver of the job loss was manufacturing sector accounting for the loss of 1.13 lakh casual jobs. The other big sector experiencing a sizeable number of casual job loss has been the construction sector.

The GST has been playing havoc in terms of loss of casual jobs. The sale of the manufacturing units has declined because of GST. This has resulted in reduced profitability and consequent retrenchment. The construction jobs too have undergone a reduction in revenue because of the GST, leading to layoffs in casual jobs. The demonetization too has been instrumental in job loss and it is from that time the real job cuts have started.

The economic performance of the incumbent in terms of employment creation has long been put to doubt as India’s growth trajectory is being seen as a jobless one. The figures above vindicate that stand! Casual jobs, as of 1 April, 2016, accounted for 5.1 percent of the jobs and before its decline to 3.6 percent by 1 July, 2017. The share of regular jobs has risen slightly from 81.6 percent in April 2016 to 82.9 percent during the same period.