Modi govt skirts around unemployment issue in Parliament, gives generic responses to MPs

In all the responses sought by both Lok Sabha and Rajya Sabha members on unemployment and job losses during the COVID-19 pandemic and in the last five years on the first day of the Parliament Monsoon Session, the Union government evaded the issue by giving details of Aatmanirbhar Bharat package, Made in India projects, self-employment schemes and loans.

The government refused to give data of unemployment and absolute numbers requested at least 13 MPs across all parties who asked for data on joblessness, unemployment and job losses during the pandemic.

According to the Centre for Monitoring Indian Economy (CMIE), India’s urban unemployment rate was 9.17% in June 2021, 11.9% in May and 7.97% in April. Rural unemployment rate in June stood at 8.75% from 10.63% in May.

May 2021 was the fourth month since at least January 2016 when overall unemployment rate breached the double-digit mark. In the weeks ended May 16 and May 23, the unemployment rate had reached 14.5% and 14.7%.

The CMIE survey revealed that April and May accounted for 22.7 million job losses. The overall unemployment rate peaked at 23.52% in April 2020. The employment rate was 36.8% in April 2021, whereas the 30-day moving average employment rate on May 23 was 35.8%. This 100 basis point fall in the employment rate translates into a fall in employment of the order of 10 million, said CMIE CEO Mahesh Vyas.

Only DMK MP A Raja’s questions got better responses. Raja’s question on whether urban joblessness rate has increased in the country in the last six months, the ministry responded stating that as per the Annual Periodic Labour Force Survey Quarterly Bulletin of April-June 2020, unemployment rate was 20.8%. Additionally, the annual PLFS data is available only up to 2018-19.

To Trinamool Congress MP Saugata Roy’s query on state-wise details of loss of employment opportunities in public sector and private sector in the country due to the pandemic, the Minister of Labour and Employment Bhupender Yadav responded, “COVID-19 pandemic followed by lockdowns has affected economies across the globe including India. Government has taken several initiatives to address the challenges and threats posed by the pandemic”.

Responding to various questions on job loss during the pandemic, unemployment rates in the country and alternate employment opportunities being created by the Union government, the Ministry of Labour and Employment said, “The government of India has taken a number of initiatives for promoting employment generation in the country. Aatmanirbhar Bharat Rojgar Yojana (ABRY) has been launched on October 1, 2020, to incentivise employers for creation of new employment along with social security benefits and restoration of employment. This scheme being implemented through EPFO seeks to reduce the financial burden of the employers and encourages them to hire more workers.”

All the responses provided by the government have EPFO percentage even if the MPs did not ask the question.

The government added that it was providing for a period of two years, both the employees’ share (12% of wages) and employers share’ (12% of wages) of contribution or only employees’ share of contribution depending on employment strength of the EPFO registered establishments, for new employees whose monthly wage is less than Rs 15,000. But again no details were given.

The government claimed that a financial package of more than Rs 27 lakh crore under “AatmaNirbhar Bharat” was launched to create employment opportunities for migrant workers, workers of organised and unorganised sector. The government’s vaguely worded response has not given details of the opportunities created.

The government added that Pradhan Mantri Mudra Yojana (PMMY) was being implemented for facilitating self-employment. Under PMMY, collateral free loans up to Rs. 10 lakh are extended to micro/small business enterprises and to individuals. However, no details of how many loans approved for how many small businesses have been given, despite pointed questions.

This is despite a survey by community platform Local Circles stating that about 59% of the startups and micro, small and medium enterprises (MSMEs) in the country are expected to scale down, shut down or sell themselves. About 41% are either out of funds or have less than 1 month of funds left.

The ministry goes on to point out that the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) was launched in 2016 to incentivise employers for creation of new employment despite Janata Dal MP Dulal Chand and BJP MP Chandeshwar Prasad asking about serious job losses due to financial crisis of industries during the pandemic.

Responding to NCP MP Mohammed Faisal’s question on whether employment opportunities have decreased and the number of casual/contract employees retrenched from their jobs during the second wave of COVID-19 pandemic, the government said out that PM-SVANidhi Scheme facilitated collateral free working capital loan up to Rs 10,000 for one-year tenure to street vendors, to help them resume their businesses during post COVID-19 period.

This was also the response to questions on details of jobs lost in the industrial sector in the last three years. Again, there are no details on the number of beneficiaries.

BJP MP Ramesh Bhiduri’s questions on the total number of employees/labourers who have lost their jobs due to COVID-19 especially in NCR region was ignored.

The ministry added that RBI and the Union government have introduced measures to infuse liquidity in the economy to sustain the market economy and raise the level of employment.

Responding to Bahujan Samaj Party MP Danish Ali’s query on the reasons for job decline and the number of people who have lost jobs in the last five years, the ministry said the data on unemployment is being collected through Periodic Labour Force Survey (PLFS) conducted by National Statistical Office since 2017-18, which, it said, provides indicators for the unemployment scenario in the country.

As per the PLFS survey results conducted during 2017-18 and 2018-19, the estimated unemployment rate for the persons aged 15 years and above in the country is 6% and 5.8%. Then the ministry lists out all the schemes it has created for ‘job creation’.

BJP members who asked questions on the subject (Chandeshwar Prasad, Ramesh Bhiduri, Lallu Singh, Sunil Mondal, Prabhubhai Vasava, Rama Devi, Mohanbhai Kalyanji and GVL Narasimha Rao) got the most staid answers with details of only the flagship schemes.