New Delhi: A survey carried out in six metropolitan cities of Bengaluru, Chennai, Hyderabad, Kolkata and New Delhi by the RBI last month, obtained households’ perceptions about the employment scenario
32.5% of those surveyed said the current employment situation had improved, while 39.2% said it had worsened. The rest reported no change.
The survey also showed that the job market in May was worse than in March, which is surprising, as job prospects should have improved as the effects of demonetisation. It is also surprising that people’s perceptions about the job market are now so much worse than in 2013-14, although real GDP growth has been much higher since then.
By December 2014, the job market had improved tremendously, according to the survey, although it was lower than the level it was at in June 2013. The jobs market seems to have fully recovered from the shock the economy faced from its balance of payments problems in September-December 2013.
Unfortunately, after December 2014, employment started going downhill and by September 2015, the percentage of people saying employment was increasing was less than those saying the situation was worsening. It remained that way for much of 2016, although the November 2016 survey showed an uptick. The major economy with the highest growth rate in the world seems to have a major problem creating jobs.
After November 2016, the job market deteriorated as a result of demonetisation and, as the latest survey results show, it is yet to recover from that blow.