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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.

Latest business news

Alphabet’s $32 billion acquisition of Wiz marks biggest cybersecurity push

Alphabet has announced a $32 billion deal to acquire Wiz, reinforcing its cloud security offerings as it competes with AWS and Microsoft Azure.

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Alphabet to acquire Wiz for $32 billion to boost cloud security

Alphabet, the parent company of Google, has announced its largest acquisition to date with a $32 billion deal to buy cybersecurity startup Wiz. The move signals Alphabet’s aggressive expansion in cloud security as it competes with Amazon Web Services and Microsoft Azure in the cloud computing market.

A strategic investment in cybersecurity

The acquisition will integrate Wiz into Google Cloud, reinforcing its security capabilities to help businesses mitigate cyber risks. The deal, which follows Alphabet’s previously unsuccessful $23 billion bid, underscores the company’s commitment to securing a stronger foothold in the cloud security space.

Wiz, an Israel-based firm, provides security solutions that work across major cloud providers, including Amazon Web Services, Microsoft Azure, and Google Cloud. The company has gained significant traction, boasting clients such as Morgan Stanley, BMW, and LVMH.

Regulatory scrutiny and financial impact

Despite the high price tag, Alphabet appears confident in securing regulatory approval under the new U.S. administration, which has maintained a watchful eye on major tech mergers. Notably, the termination fee—over $3.2 billion—stands among the highest in M&A history, signaling both parties’ commitment to closing the deal.

Alphabet’s stock dipped nearly 3% following the announcement, reflecting investor concerns over its heavy spending, particularly in AI and cloud computing. The company may need external financing, given its cash reserves of approximately $23.47 billion as of December 31, 2024.

Growing importance of cybersecurity

The acquisition highlights the increasing demand for cybersecurity solutions, especially in light of last year’s global CrowdStrike outage that disrupted businesses worldwide. Analysts suggest that for Google Cloud to compete effectively with Microsoft Azure, it must offer a more comprehensive suite of security services.

Alphabet expects the deal to be finalized in 2026, pending regulatory approvals. Meanwhile, Wiz will continue providing its services across multiple cloud platforms, potentially alleviating antitrust concerns.

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Gadgets

Zepto launches quick delivery of iPhone, iPad, and Apple products in India

Zepto partners with Apple to provide 10-minute doorstep delivery of iPhones, iPads, AirPods, and more in select Indian locations, competing with Blinkit and Swiggy Instamart.

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Zepto now offers quick delivery of Apple products in India

Zepto, the quick commerce platform, has announced its partnership with Apple to offer doorstep delivery of iPhones, iPads, Apple Watches, AirPods, and other Apple accessories in India. The collaboration aims to provide instant access to premium Apple products, with deliveries promised in under 10 minutes.

Zepto expands Apple portfolio with latest devices

According to an official statement from Zepto, users in select locations can now order Apple’s recently launched iPhone 16E, AirPods 4, and the latest iPad models. The initiative aligns with the platform’s strategy to expand its electronics category, following its recent launch of quick deliveries for Vivo smartphones and Asus accessories in key Indian cities.

Speaking on the development, Abhimanyu Singh, Business Head of Electronics at Zepto, highlighted the growing demand for Apple products on the platform. He revealed that over one million users searched for Apple items in the past month, with a 35% month-on-month increase in searches.

Discounts, EMI offers, and availability

Zepto is offering various incentives, including launch discounts, no-cost EMI plans, and special offers on bank card payments. Customers can also avail of coupon-based and mobile wallet discounts to reduce costs further.

While the service is currently limited to select cities, it positions Zepto in direct competition with Blinkit and Swiggy Instamart, which also offer quick delivery of Apple products. Additionally, BigBasket has begun delivering iPhone 16 and iPhone 16 Plus in partnership with Croma Electronics in cities like Bengaluru, Delhi NCR, and Mumbai.

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Gadgets

Zepto to deliver Apple products within 10 minutes

This announcement follows closely on the heels of competitor Blinkit, which recently began its rapid delivery service for Apple products, including MacBook Airs, iPads, and AirPods, in select metropolitan areas across India.

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Zepto, the innovative quick commerce platform, has taken a significant leap forward by unveiling a comprehensive selection of Apple products in its electronics category. With the addition of renowned items such as iPhones, iPads, Apple Watches, AirPods, and an array of accessories, Zepto is poised to enhance its competitiveness in the premium electronics sector. This strategic move expands its offerings to over 5,000 stock-keeping units (SKUs) available from diverse sellers on the platform.

This announcement follows closely on the heels of competitor Blinkit, which recently began its rapid delivery service for Apple products, including MacBook Airs, iPads, and AirPods, in select metropolitan areas across India.

In response to the escalating demand for immediate access to high-quality gadgets, Zepto aims to position itself as a go-to destination for consumers seeking high-end electronics. The company has reported a notable 35% month-over-month surge in the number of users actively searching for Apple products.

“Our partnership with Apple allows us to offer a broad array of cutting-edge technology, making it more accessible and revolutionizing the buying experience for premium gadgets,” said Abhimanyu Singh, business head of the electronics division at Zepto. He highlighted the increasing consumer interest, stating, “In just the past month, over a million users have searched for Apple devices—whether it’s the latest iPhone 16E, AirPods 4, or iPads—indicating a strong appetite for quick access to premium tech.”

Singh added that this expansion is not just about adding products; it is about enhancing the overall shopping experience. “With our sellers bolstering their collaboration with Apple, we’re redefining what it means to shop for electronics, ensuring the process is faster, more convenient, and seamless. We are grateful to our sellers for making this possible,” he noted.

Overall, Zepto proudly showcases a diverse catalogue of more than 45,000 products, spanning categories such as groceries, electronics, beauty items, and toys, serving customers across nearly 50 cities in India. With its commitment to excellence, Zepto continues to set new standards for quick commerce in the high-tech market.

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