India Likely To Create 16 Lakh Fewer Jobs Due To Economic Slowdown In 2020
The economic slowdown in 2019 is said to continue its impact in 2020 with projected jobs cut of 16 lakh.
According to SBI research report- 'Ecowrap', last year, 89.7 lakh new jobs were created. "In FY19, India had created 89.7 lakh new payrolls as per the EPFO data. In FY20, as per current projected this number could be at least 15.8 lakh lower," the report said.
Ecowrap is the payroll data published monthly by the Research Team of the State Bank of India. It tenders an overview of the current economic and financial status.
The Employment Provident Fund Organisation data covers jobs with a monthly salary of ₹15000 or less. The SBI research report says during April-October 2019, the actual net new payroll was 43.1 lakh, which when recalculated as an annual rate comes out to be 73.9 lakh for FY20, reported Business Stnadard.
In the National Pension System (NPS) category, the State and Central government are to create close to 39,000 fewer jobs in FY20 as per current trends. The research report mentions the decline in remittances in states like Assam, Bihar, Rajasthan, Odisha, and UP.
The report suggests that people in the agricultural and industrial sectors in developing states migrate to developed states in search of jobs. For instance, people move from Uttar Pradesh, Bihar, the southern part of Madhya Pradesh, Odisha, and Rajasthan to states like Punjab, Gujarat, and Maharashtra.
In India, migration has been a crucial livelihood option for both poor and non-poor people. For several migrants, New Delhi is a more preferred destination due to the abundance of job opportunities.
"These migrants have been making significant financial contributions to their families in their places of origin. Moreover, migrants make significant contributions to the national economy by providing human capital in sectors such as textiles, hospitality, construction, mining, brick-making, and small industries", the report said.