English हिन्दी
Connect with us

Latest business news

Employment situation grim, says CMIE; Rural wages drop, says RBI report

Published

8 years ago

on

Employment situation grim, says CMIE; Rural wages drop, says RBI report

Labour participation and employment rates in India are around their lowest levels, says a report of Centre for Monitoring Indian Economy (CMIE) which produces economic and business databases.

And, while employment is at its lowest, rural wages have reduced dramatically since 2014 under Narendra Modi government, making it a period of distress according to the Reserve Bank of India (RBI).

According to an article by Mahesh Vyas on CMIE website, the employment situation continues to remain grim in the country.

According to CMIE, the unemployment rate continues to remain high compared to the levels a year ago when they ranged closer to 4 per cent although it fell slightly to 5.9 per cent in April 2018 compared to the over 6 per cent rate seen in the preceding two months.

April began with rising unemployment rates of over 7 per cent, but then the rates moved decidedly lower in the second half of the month.

Labour participation rate (LPR) declined in April 2018. At 43.1 per cent the LPR in April was among the lowest. In the past 28 months, (since the CMIE started measuring LPR), this was the second-lowest LPR level.

“The low LPR and high unemployment rate combine to give us a low employment rate in April 2018. The employment rate was 40.7 per cent during the month. This is a small improvement over the 40.5 per cent level of March 2018. But, March and April this year mark the lowest employment rates recorded since January 2016 when we began these measurements,” said Vyas.

Here are some points he makes:

– The estimated employed persons in the country was 403.2 million and the unemployed who were actively looking for a job during the month was 25.1 million.

–  An additional 9.5 million were unemployed and willing to work but were not actively looking for a job.

– The total workforce willing to work and was waiting for jobs to become available therefore was of the order of 35 million.

– Large numbers of labour force quit the labour markets post demonetisation and have not returned to the labour markets. It is likely that when conditions improve these could come back. If we add these, then the workforce that is willing to work but does not have a job is much larger.

Vyas describes the current situation, particularly in urban India, as “sombre”.

Noting that the number of applicants for a single job often runs into several thousands, Vyas says: “Although the overall unemployment rate fell in April, it rose in urban India – from 6.5 per cent in March to 6.6 per cent in April. Labour participation rate fell from 41.1 per cent to 40.8 per cent. And, the employment rate fell to its lowest level of 38.1 per cent.”

The employment rate had touched a new low of 38.4 per cent in March 2018 itself. However, in April, it fell further to 38.1 per cent.

The working age Vyas takes into consideration are all persons above the age of 15 years. In September 2016, over 41 per cent of such people were working.

Employment in urban India fell to an 11-month low in April 2018.

However, says Vyas, the month’s data also seems to suggest a pause in the growing employment in urban India seen in the preceding six months. This rising employment had stabilised the employment rate at around 40 per cent after seeing a fall in the preceding months.

At the same time, a RBI report released last week (April 25) talked of a sharp decline in rural wages since 2014. “During the last 10 year period, a high growth phase in rural wages from 2007-08 to 2012-13 was followed by a phase of significant deceleration,” the RBI report said.

Between October 2007 and October 2013, the report noted, wages in the agricultural and non-agricultural sectors grew at 17% and 15%, respectively. Since November 2014, however, agricultural and non-agricultural sector wages grew at only 5.6% and 6.5%, respectively.

Employment situation grim, says CMIE; Rural wages drop, says RBI reportPhase I (Jan 2002-Sep 2007)

The first phase spanned from January 2002 to September 2007, when the average growth in rural nominal wages remained around 4 per cent, while the average rural inflation stayed around 4.5 per cent. As a result, there were extended spells when growth in real wages stayed in the negative territory. This period has been analysed quite extensively in the literature. Several authors have also termed this phase as the period of agrarian distress, a lot of which was attributed to poor agricultural performance and lower employment opportunities outside agriculture (Himanshu, 2006; Abraham, 2009).

Phase II (Oct 2007-Oct 2013)

This phase covers the period from October 2007 to October 2013. During this phase, the average growth in nominal agricultural and non-agricultural wages stood at around 17 per cent and 15 per cent, respectively, surpassing rural inflation which averaged at around 10 per cent. Evidently, there were several months when growth in real wages reached such levels that were not a regular phenomenon, at least never observed in the preceding decade.

Phase III (Nov 2014- Oct 2017)

This is the current phase which began from November 2014. Notwithstanding data limitations (as mentioned in section III) one cannot ignore the fact that rural wage growth has recorded significant deceleration during this phase. This phase is also characterized by low inflation occasionally surpassing growth in nominal rural wages, pushing real wage growth to the negative territory. For obvious reasons, such movements in rural wages after a prolonged period of boom has attracted the attention of policy research. Again, this phase has been labelled as a period of rural distress. However, if we consider average growth in rural wages and inflation, we do not find a significant gap between the two. Average rural inflation during phase III so far is around 4.0 per cent, whereas average growth rates in nominal agricultural and non-agricultural wages are 5.6 per cent and 6.5 per cent, respectively.

A whole host of factors including the global slowdown in growth, collapse of international primary commodity prices, and major contraction in food prices led to the decline in growth of rural wages, according to the RBI report.

The Indian economy also suffered two consecutive droughts in financial years 2015 and 2016, which wreaked havoc in rural India, said a report in Quartz India.

The ineffective implementation of the Mahatma Gandhi National Rural Employment Generation Scheme (MGNREGS) in recent years has also contributed to the decline in farm income, the Quartz report said, on basis of RBI report.

Moreover, growth in the construction sector, which saw a significant pick up during 2000 and 2012 and was the major driver of rural non-farm employment, slowed down in recent years.

Related Topics:
Continue Reading

Latest business news

Xbox announces 3,200 layoffs as Asha Sharma outlines major restructuring plan

Xbox has announced plans to lay off 3,200 employees over the next year while introducing a major restructuring programme that includes management changes, studio restructuring and cost-cutting measures.

Published

3 weeks ago

on

July 7, 2026

By

XBOX layoff

Xbox has announced plans to reduce its workforce by 3,200 employees, representing around 20 per cent of its total staff, over the coming year as part of a broader restructuring programme linked to Microsoft’s increased investment in artificial intelligence.

According to an email shared with employees by Asha Sharma, the company will begin the process immediately, with 1,600 employees leaving on Monday, while the remaining job reductions will take place during FY27. The company also plans to divest four gaming studios and is preparing to separate from another.

Business reset planned amid financial challenges

In her message to employees, Sharma said the company’s current financial position required significant changes, stating that Xbox’s business was operating at substantially lower margins than comparable platform and publishing companies.

She said the layoffs were not a reflection of employees’ commitment or abilities but were part of a wider effort to strengthen the company’s long-term business.

The workforce reduction comes as Microsoft continues implementing AI-focused cost-cutting measures across its operations. Overall, the technology company is reportedly cutting 4,800 jobs, with Xbox accounting for the largest share.

Sharma also described the gaming sector as experiencing one of its most challenging hardware periods and said the company needed to “reset Xbox” to improve its future performance.

Company to streamline operations and reduce management layers

As part of the restructuring strategy, Xbox plans to simplify its organisational structure, revise its content portfolio and improve platform operations.

According to Sharma, the company currently loses 64 cents for every dollar invested annually, making operational efficiency a key priority.

She said Xbox would increasingly support independent game creators by offering open development tools and broader audience access.

The restructuring will also see Mojang and King report directly to Sharma. She said both studios have evolved into major gaming platforms with large monthly active player bases and will play a central role in Xbox’s future strategy.

To improve decision-making, the company plans to significantly reduce its management hierarchy. Sharma said some departments currently have as many as 14 management layers, which slow down operations. Xbox aims to reduce this to no more than five layers, and in some cases, only three.

The company will also reduce vendor spending by 50 per cent as part of its cost-saving measures.

Helen Chiang promoted to Chief Operating Officer

Alongside the restructuring announcement, Sharma confirmed the promotion of Helen Chiang to the newly created position of Chief Operating Officer.

Chiang will oversee profit and loss responsibilities across Xbox’s content, hardware, platform and services divisions while reporting directly to Sharma.

According to Sharma, the new operating structure is intended to improve investment decisions, strengthen accountability and better integrate the company’s various business units.

Despite the ongoing restructuring and job cuts, Sharma said Xbox remains committed to long-term growth and plans to continue investing heavily in the business, while placing greater emphasis on disciplined spending and strategic priorities.

Continue Reading

India News

Bank holiday today: Are banks open or closed on June 29? Here’s what RBI calendar says

Banks in Himachal Pradesh and Mizoram will remain closed on June 29, 2026, due to regional holidays, while banking operations will continue normally in most other states.

Published

4 weeks ago

on

June 29, 2026

By

Bank Holidays

As June comes to an end, many customers are wondering whether banks across the country are open on June 29, 2026. According to the Reserve Bank of India’s (RBI) holiday calendar, bank operations will not be affected nationwide, but branches in some states will remain closed due to local holidays.

Banks closed in these states on June 29

Banks will remain shut in Himachal Pradesh on Monday, June 29, on account of Sant Guru Kabir Jayanti. In addition, bank branches in Mizoram will remain closed to observe Remna Ni, a regional public holiday.

However, bank branches in most other states and Union Territories are expected to function normally as June 29 is not a nationwide banking holiday.

Will online banking services remain available?

Even when physical branches remain closed, customers can continue using digital banking facilities. Services such as internet banking, mobile banking, UPI transactions, ATM withdrawals and cash deposits at ATMs will remain operational.

Customers planning to visit a bank branch are advised to check with their local branch beforehand, as holiday schedules may vary depending on the state and local observances.

Continue Reading

India News

Union Budget 2026 highlights: Nirmala Sitharaman Raises Capex to Rs 12.2 Lakh Cr, West Bengal Gets Major Allocation

Finance Minister Nirmala Sitharaman is presenting the Union Budget 2026 in Parliament today. Follow this space for live updates, key announcements, and policy insights.

Published

6 months ago

on

February 1, 2026

By

Finance Minister Nirmala Sitharaman arrives to present Union Budget 2026

Finance Minister Nirmala Sitharaman will shortly present the Union Budget 2026 in the Lok Sabha, marking her ninth consecutive Budget. The annual financial statement is expected to outline the government’s policy priorities, reform agenda and spending plans for the coming year. Stay tuned for live updates, key announcements and immediate reactions as the Budget speech unfolds.

Finance Minister Nirmala Sitharaman tabled her ninth Union Budget today, beginning her speech at 11 am.

Nirmala Sitharaman is set to present her ninth Union Budget today, with the finance minister scheduled to begin her speech at 11 am.

Budget 2026 live updates: Presenting the Union Budget for 2026–27, Finance Minister Nirmala Sitharaman said the occasion coincided with Magh Purnima and the birth anniversary of Guru Ravidas. She noted that over the past 12 years, India’s economic journey has been defined by stability, fiscal discipline, sustained growth and moderate inflation.

The budgeted fiscal deficit for fiscal 2026 is estimated at 4.4 per cent of gross domestic product (GDP)

Planned capital expenditure this fiscal year Rs 11.2 lakh crore

Rare earth corrdiors in Odisha and Kerala

Hi-tech tool rooms to be set up by PSUs

Construction equipment scheme to be launched

Container manufacturing scheme for Rs 10,000 crore over 5 years

Rs 10,000 crore SME Growth Fund

Semi-conductor mission to get Rs 40,000 crore

Rs 12.2 lakh crores for infrastructure development

Dedicated RITES to repurpose land of Central PSUs

20 new waterways over next 5 years to be connected

7 high-speed corridors on rail

High-level committee on banking for next phase of Viksit Bharat

Capital expenditure hike of to ₹12.2 lakh crore in Budget 2026, with West Bengal receiving a significant share of allocations.

Mahatma Gandhi Gram Swaraj Initiative aimed at boosting the khadi, handloom, and handicrafts sectors.

High-speed rail corridors: Mumbai-Pune, Pune-Bengaluru, Hyderabad-Bengaluru, Chennai-Bengaluru, Delhi-Varanasi, Varanasi-Siliguri, Pune-Hyderabad

Five university campuses to be established near industrial corridors

Lakpati Didi program expanded in Budget 2026 to reach more beneficiaries across India.

Fiscal deficit for FY26 revised to 4.4%; Budget Estimate for FY27 set at 4.3%.

TCS on overseas tour packages cut to 2% to ease travel costs

Tax holiday to foreign companies that provide cloud services by setting up data centres in India till 2047

17 cancer drugs exempted from import duties

Continue Reading

Trending

© Copyright 2022 APNLIVE.com