Global Unemployment Crisis- 17.8mn Indians to be jobless in 2017!

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The 2017 World Employment and Social Outlook report published by the United Nations International Labour Organisation (ILO) predicts a marginal increase in the rate of unemployment in India between the years 2017 and 2018. Also, the country is likely to see the condition of social inequality worsening. According to the report, India’s unemployment rate will continue to be 3.4% during 2017-18, with the number of jobless people surging to 17.8mn in 2017 and 18mn in 2018, up from 17.7mn in 2016. The negative projections contradict the country’s positive performance in the previous year. In 2016, India’s 7.6% growth rate accounted for South Asia’s 6.8% growth. During that year, South Asia created 13.4mn new employment, a majority of which were recorded in India. The growth of employment opportunities in the country in 2016 is attributed to initiatives like the ‘Make in India’ campaign and growth of manufacturing, service and IT industries in the economy.

unemploymentComing to the global unemployment crisis, the ILO’s latest report projects the rate of joblessness to grow to 5.8% in 2017, up from 5.7% in 2016. This means the total number of unemployed people globally will cross 201mn in 2017. The main reason behind this surging unemployment is the continued growth of the labour force. Compared to developed countries, the unemployment crisis is severe in emerging nations. This is because the recessions of 2016 are likely to continue to have their adverse impact on the labour market in developing countries, especially those falling in Sub-Saharan African and South Asian regions. On the other hand, situations in developed countries are expected to improve as unemployment rate is likely to fall from 6.3% in 2016 to 6.2% in 2017. Southern, Northern and Western parts of Europe too will see improvement in employment, however, the pace will be slow. Meanwhile, structural unemployment is likely to worsen.

“Unemployment crisis calls for new and effective government policies and further development of various sectors in India”

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Each year, millions of graduates are produced by several developed and emerging economies, leaving a big question before ILO- “Where are all of these graduates to be employed?” Another large set of victims of the crisis include labourers who are at the risk of losing their jobs, shelter and/or other necessities. Only further inudstrialisation and development of various industries can create job opportunities in the emerging nations. Moreover, the ILO reckons that international cooperation is essential to bring about a positive global socio-economic change and fight the anticipated unemployment crisis.