ImageCredits:The Wire
The Reserve Bank of India’s most recent KLEMS data has caused controversy due to a shocking disclosure that presents an unrealistically optimistic image of job growth. Experts are warning of an epidemic of hidden unemployment that they say is sweeping the country, despite the RBI’s hopeful assertions of a significant increase in employment.The Reserve Bank of India’s KLEMS (Capital, Labor, Energy, Materials, and Services) data indicates a notable increase in employment rates in a number of different industries. Critics counter that these figures do not adequately convey the terrible reality that lies under the surface. Independent economists and researchers claim that the seeming increase in employment conceals an unparalleled degree of hidden unemployment that is afflicting India’s labor force.
According to independent analysts and economists, the purported rise in employment masks an unprecedented level of disguised unemployment plaguing India’s workforce.
Disguised unemployment occurs when individuals appear to be employed but are actually underutilized or performing tasks that contribute minimally to productivity. This phenomenon is particularly insidious as it distorts the true health of the labor market, often leaving workers vulnerable to precarious conditions and stagnant wages.
Moreover, recent surveys and grassroots reports indicate a growing mismatch between the quality of jobs created and the skills possessed by the workforce. Many new positions are characterized by low pay, minimal benefits, and little job security, exacerbating the challenges faced by millions of Indians striving for meaningful employment.
As the debate intensifies, stakeholders are calling for a reevaluation of how employment data is collected and interpreted. There is a pressing need for transparency and accuracy in reporting economic indicators to ensure policymakers have a clear understanding of the challenges ahead.
In response to mounting criticism, the RBI has pledged to review its methodologies and collaborate more closely with independent researchers to provide a clearer picture of India’s employment landscape. However, skepticism remains high among those who fear that without substantial reforms, the plight of the underemployed will continue to be overshadowed by misleading statistics.