Understanding the Disparity
BENGALURU, July 23 – In the heart of one of the world’s fastest-growing economies, a deep concern stirs. A new survey by Reuters indicates significant discrepancies in India’s official unemployment data. According to prominent economists, the government’s reported jobless rate significantly undercuts reality, suggesting that the true figures could be double the reported 5.6%.
Growth Without Jobs?
India’s robust annual growth rate of 7.4% in early 2025 masks a dire shortcoming—it fails to translate into adequate employment opportunities for the burgeoning young population. The mismatch between economic expansion and job creation remains a contentious topic as experts argue that the definition of ‘employment’ blurs the lines, counting even minimal engagement as employment.
Economists’ Concerns: More Than Just Numbers
Noteworthy voices from the economic landscape, like Professor Pranab Bardhan from UC Berkeley, caution against overly optimistic employment statistics. “It’s dust in the eyes,” he remarks, highlighting how current data practices leave severe employment issues unaddressed. India’s Ministry argues for the credibility of its data, yet the debate over statistical representation continues.
True Picture of Employment
Traditionally, India accounted informal and subsistence work as employment, skewing comparisons with international standards. It’s not merely an academic debate; former Reserve Bank of India Governor, Duvvuri Subbarao, emphasizes an urgent need for diverse job creation beyond finance and IT sectors. Instead, he calls for a focus on manufacturing to provide the labor-intense opportunities the country broods over.
Reassessing Employment Strategy
Persistent underemployment challenges reveal stagnating wages, contradicting the prosperity narrative tied to increasing billionaire presence. Experts advocate for a shift in policy—prioritizing substantial educational improvements, fostering private investment, and overhauling regulatory obstacles. Professor Jayati Ghosh underscores the necessity for quality employment generation, a sentiment echoed by numerous economists.
Policy Swivels: What’s Next?
Solutions entail reassessing the narrative. Santosh Mehrotra of the University of Bath emphasizes dropping ineffective incentives like the PLI scheme. Manufacturing holds the key, he asserts, with a broad-based approach rather than selective interventions. According to Reuters, realigning policy can pave the way for an equitable job market, ensuring that India’s youth can look forward to a prosperous future.
