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Unemployment rate at 6.9 percent, highest in two years when systematic measuring began

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Unemployment rate at 6.9 percent, highest in two years when systematic measuring began

According to the CMIE report, only 39.5% of the Indian adult population or 397 million people were employed in Oct 2018, 2.4% lower than the 407 million in Oct 2017.

Against Prime Minister Narendra Modi’s promise of creating 10 million jobs a year, India’s unemployment rate jumped to a high of 6.9% in October 2018, according to a report by the Centre for Monitoring Indian Economy (CMIE).

This is the highest in two years since January 2016 “when we began measuring labour statistics systematically,” according to Mahesh Vyas, CEO of CMIE.

The study comes at the second anniversary of India’s demonetisation exercise which, according to several reports, dealt a body blow to the country’s small and medium businesses as they struggled to sustain operations amid an acute cash crunch and resulted in massive layoffs.

According to the CMIE report, only 39.5% of the Indian adult population was employed as of October, the lowest employment percentage. An estimated 397 million people were employed in October 2018, 2.4 per cent lower than the 407 million persons employed in October 2017. This is a sharp year-on-year fall in employment.

In the months following demonetisation, over 1.5 million jobs were lost, according to CMIE.

The situation remains grim even now. There was zero growth in the job market in financial year 2018, the unemployment rate rising to a two-year high of 6.9% in October 2018, the CMIE report said.

Another worrying sign is the labour participation rate (LPR), which, in October, stood at a dismal 42.4%, the lowest level since January 2016. LPR, deemed a better indicator of employment, is the share of the population above 15 years of age that is employed or seeking jobs.

“Labour participation rate (LPR) was of the order of 47%-48% before demonetisation. But, it fell sharply after demonetisation and has still not recovered,” Mahesh Vyas said in the report.

Further, a sharp recovery in the situation is unlikely as private-sector investments have remained subdued.

While employment has been falling, the number of people unemployed who are actively looking for a job has been rising. As of October 2018, there were 29.5 million unemployed persons actively looking for jobs. This is much larger than the 21.6 million unemployed persons looking for jobs in October 2017.

The count of the unemployed persons actively looking for jobs has risen steadily since its low of 14 million in July 2017. In a little over a year, the number unemployed has more than doubled. This partly reflects the return of labour to the labour markets after their exodus post demonetisation.

The return of labour to the labour markets indicates possibly a return of hope, the CMIE report said, although there still isn’t any sign of a significant pick up in jobs on offer.

Given that investments continue to remain subdued, the economy does not seem to have the capacity to absorb much more labour.

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Zomato introduces Food Rescue feature

“We don’t encourage order cancellation at Zomato, because it leads to a tremendous amount of food wastage,” he said.

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Zomato has introduced a new feature called Food Rescue to minimise food wastage, announced the food delivery platform CEO Deepinder Goyal on Sunday.

Announcing the new feature on X, Goyal said the decision, to introduce the new feature, was taken to prevent the tremendous amount of food wastage due to order cancellation on the platform.

Committed to minimising food wastage, the Zomato boss said: “We don’t encourage order cancellation at Zomato, because it leads to a tremendous amount of food wastage.”

Goyal said despite having stringent policies, and a no-refund policy for cancellations, more than 4 lakh perfectly good orders get cancelled, for various reasons by customers.

He said the top concern for the online food delivery platform, the restaurant industry, and even the customers who cancel these orders, is to somehow save the food from going to waste.

With the launch of the new feature, Food Rescue, cancelled orders will now pop up for nearby customers, who can grab them at an unbeatable price, in their original untampered packaging, and receive them in just minutes.

According to Zomato, the cancelled order will pop up on the app for customers within a 3 km radius of the delivery partner carrying the order. To ensure freshness, the option to claim will only be available for a few minutes.

The online food delivery platform will not keep any proceeds except the required government taxes and the amount paid by the new customer will be shared with the original customer (if they made payment online) and with the restaurant partner.

Orders containing items sensitive to distances or temperature such as ice creams, shakes, smoothies, and certain perishable items, will not be eligible for Food Rescue.

Restaurant partners will continue to receive compensation for the original cancelled order, plus a portion of the amount paid by the new customer if the order is claimed, the company said. “Most restaurants have opted in for this feature, and can opt of it easily whenever they want, directly from their control panels,” it added.

The delivery partners will be compensated fully for the entire trip, from the initial pickup to the final drop-off at the new customer’s location, it said.

Food Rescue will show up on the customers’ home page automatically if there’s a cancelled order available for them to grab. The Customers have to refresh the home page to check for any newly available orders which need to be rescued.

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Adani, Torrent compete to purchase Gujarat Titans from CVC Capital

The probable sale of the Gujarat Titans, with the lock-in period coming to a close, will therefore be a defining moment in the changing face of IPL investments.

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The Adani Group and Torrent Group are currently negotiating a deal with private equity firm CVC Capital Partners to offload a controlling stake in the Indian Premier League franchise Gujarat Titans. According to sources, close to the development, reports say CVC Capital Partners will be looking to sell a majority interest while retaining a minority share in the franchise.

This becomes important because it is aligned with the end of the lock-in period by the Board of Control for Cricket in India (BCCI), which restricts any new teams from selling stakes until February 2025. The three-year-old franchise Gujarat Titans is reportedly worth $1 billion to $1.5 billion. CVC Capital Partners had paid ₹5,625 crore for the franchise in 2021.

A source close to the development pointed out that IPL franchises have attracted many investors’ interest since the league has proved an asset with a good reputation for money-making capabilities and cash flows. This growing interest of investors embodies the financial value and stability that come with the IPL franchises.

Gautam Adani, who owns teams in the Women’s Premier League and UAE-based International League T20, is understood to be one of the serious buyers. In 2023, Adani’s group won the Ahmedabad franchise in the WPL with a bid of Rs1,289 crore, the highest offer. His interests in this potential deal signal his commitment to expanding his footprint in the cricketing world.

Arvinder Singh, COO of Gujarat Titans, exuded confidence in the financial future of the franchise. He said the team was confident of turning profitable in the next media rights cycle, referring to even the original ten IPL franchises that took four to five years to turn profitable. He added confidently that the Gujarat Titans would not only turn profitable but significantly enhance in brand value.
 
This surging interest of investors in it is evidence of the growing financial attractiveness of IPL franchises, driven by healthy revenue streams and an increasing global footprint. The probable sale of the Gujarat Titans, with the lock-in period coming to a close, will therefore be a defining moment in the changing face of IPL investments.

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PayTm share price slips 2 per cent over SEBI warning

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Paytm

The share price of PayTm fell by nearly 2 per cent on Tuesday following a warning from the the Securities and Exchange Board of India (SEBI).

PayTm’s parent One 97 Communication had got SEBI’s administrative warning letter on some transactions involving the PayTm Payments Bank during fiscal year 2021-2022. The bourses reacted strongly leading to PayTm shares falling by 1.88% to Rs 460.80 per share on the Bombay Stock Exchange.

SEBI said it had noted the violation with concern and said these matters are being viewed very seriously. The regulator warned the company to exercise caution going forward and improve compliance to rules to prevent similar incidents in the future.

The markets regulator added that failure to comply with rules may force it to invoke enforcement actions as per the law.

In its response to SEBI, PayTm said in a media release that it has always followed listing regulations, as well as any change to these rules over time. The company said it would keep up its commitment to maintain and follow high standards of compliance. Paytm said it intends to provide an adequate response to SEBI on this matter.

PayTm said it has always followed Regulation 23 along with Regulation 4(1)(h) of the SEBI Listing Regulations, without including any change made to these rules over time. Paytm added that the letter from  SEBI has no influence on its finances, operations or other activities in any way.

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