Govt May Not Acknowledge Unemployment Crisis, But Someone Who is Unemployed Knows He’s Unemployed: Author Vivek Kaul on Twitter

India, at the end of four-and-a-half years of the Bharatiya Janata Party (BJP)’s reign, stands immersed in myriad problems. Many of these problems are economic. From sky-high unemployment to agrarian distress, a list of issues would perhaps end up taller than a small hill. At present, the question that takes precedence over others right before the Lok Sabha elections is most definitely joblessness, especially considering it was one of the planks based on which the BJP came to power at the Centre in 2014.

Vivek Kaul, columnist and author of the Easy Money trilogy, in a Twiter thread expounded in detail about India’s unemployment crisis.

A small thread on India's unemployment crisis follows.

— शिक्षित बेरोज़गार (@kaul_vivek) February 9, 2019

One news item that makes it to the media over and over again, is of lakhs of people applying for a few hundred or a few thousand government jobs. If this does not show the unemployment crisis, the question is what does?

— शिक्षित बेरोज़गार (@kaul_vivek) February 9, 2019

Kaul wrote: “I first started writing about the crisis around half a decade back. At that point of time, people did not take what I was saying seriously. Now they are,” adding, “One news item that makes it to the media over and over again, is of lakhs of people applying for a few hundred or a few thousand government jobs. If this does not show the unemployment crisis, the question is what does?”

Kaul noted that “the corporate/bhakt types” — the BJP’s more prominent electorate — have a simplistic explanation for this. People in India love government jobs, which is why they apply for these jobs. “Yes, they love these jobs. The question is why,” asks Kaul, explaining, “At the lower level, the govt pays tremendously well. Four to five times for the same job. This comes with job security. Medical facilities. Pension etc. So why will they not apply? Working in the informal sector, and getting paid an extremely low salary, without any facilities, is a good enough reason to apply for govt jobs.”

At the lower level, the govt pays tremendously well. Four to five times for the same job. This comes with job security. Medical facilities. Pension etc. So why will they not apply?

— शिक्षित बेरोज़गार (@kaul_vivek) February 9, 2019

The youth unemployment numbers vary from 13-27 per cent as per the latest National Sample Survey Organisation (NSSO) figures, which the government has called a “draft report”. Kaul underlined the fact that many individuals are unemployed in the country.

Of course, there are those who are genuinely unemployed. The youth unemployment numbers vary from 13-27% as per the latest NSSO, which the government has called a "draft report".

— शिक्षित बेरोज़गार (@kaul_vivek) February 9, 2019

The NSSO’s periodic labour force survey showed that the unemployment rate in the country increased to a forty-five-year high of 6.1 per cent in 2017-18. According to the unreleased report, for the July 2017-June 2018 period, unemployment was the highest since 1972-1973. The unreleased data reportedly also showed that labour force participation rate (LFPR) — the proportion of the population working or seeking jobs — went down from 39.5 per cent in 2011-12 to 36.9 per cent in 2017-18.

Kaul also wrote about the correlation between growing unemployment and social unrest.

Well, pressing this point, people have also told me, if there is so much unemployment, why are people not killing each other. I mean that is as daft as it can get. Do we want to wait for that to happen?

— शिक्षित बेरोज़गार (@kaul_vivek) February 9, 2019

I find it funny that when I point out the CMIE unemployment data, people tell me that it is a private institution. The same set doesn't bat an eyelid while giving the Ola/Uber/Flipkart… example.
Bhagwan ne akal kewal aap logon ko di hai. Baaki sab bewakoof hain.

— शिक्षित बेरोज़गार (@kaul_vivek) February 9, 2019

Also, it is not like CAs were not passing out before 2014, and setting up their own practice. Same about doctors.

— शिक्षित बेरोज़गार (@kaul_vivek) February 9, 2019

Also, the basic idea behind Mudra loans was that the government will refinance these loans. Less than 5% of these loans are being refinanced which means the basic purpose for which Mudra was set up hasn't worked.

— शिक्षित बेरोज़गार (@kaul_vivek) February 9, 2019

Of course, by setting up engineering colleges dime a dozen, our politicians have basically ensured that we produce many more engineers than we need (more than China+America).

— शिक्षित बेरोज़गार (@kaul_vivek) February 9, 2019

Thanks @surabhitrehan for pointing out this mistake.
Around 90% of Mudra loans are Shishu loans of up to Rs 50,000 (not kishor loans as i had written). An average Shishu loan is around Rs 25,000-26,000. I am not sure how many jobs can such a small loan create.
Apologies.

— शिक्षित बेरोज़गार (@kaul_vivek) February 9, 2019

Concluding his thread, Kaul reasoned that “the government may not acknowledge an unemployment crisis, but someone who is unemployed knows he is unemployed. And unless he is compensated otherwise (like Romeo Gangs in UP), he is not going to fall for the govt propaganda.”

Ultimately, the most important point is that those who are unemployed, know that they are unemployed or underemployed or a part of India's huge disguised unemployment in agriculture.

— शिक्षित बेरोज़गार (@kaul_vivek) February 9, 2019

Also read: Death Of The India Story? Unemployment in India at 45-Year High