Demonetisation, GST Killed Jobs: CWS Approach Shows Unemployment Rate Stood At 8.9% in 2017-18
The unemployment rate for women and men stood at 9.1% and 8.8%, respectively.
The unemployment rate stood at a 45-year high of 6.1 per cent in the July 2017-June 2018 period, as per the National Sample Survey Office’s (NSSO’s) data accessed by Business Standard.
While the 6.1% figure is arrived at through the Usual Status Approach, the impact of Goods and Services Tax (GST) and demonetisation is visibly higher according to the current weekly status (CWS) approach — where the activity status of a person is determined on the basis of the reference period of one week — of the NSSO’s periodic labour force survey (LFPS). According to the latter, the unemployment rate stood at 8.9 per cent in 2017-18, Business Standard reported.
The unemployment rate for women was 9.1 per cent according to the CWS approach against 5.7 per cent in usual status. Similarly, the unemployment rate for men was 8.8 per cent, according to the CWS approach and 6.2 per cent as per the unemployment rate in usual status.
The field work for accumulating the CWS data was done between July 2017 and June 2018 i.e. people revealed their employment status to surveyors months after the Modi government took the demonetisation decision in November 2016.
“The figures show the double-whammy effect of demonetisation and the GST on jobs. Taking the CWS approach makes sense as the usual status approach considers 365 days, but the former takes into account the status within seven days and factors in the impact of the government’s major economic decisions,” Mahesh Vyas, chief executive officer, Centre for Monitoring Indian Economy, told Business Standard.