Labour Bureau Data Proves What Modi Govt Isn't Admitting - Demonetisation and GST Hurt Employment -Gaurav Vivek Bhatnagar

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published Published on Mar 7, 2018   modified Modified on Mar 7, 2018

Though the government is being adamant that there is no data on the impact of demonetisation and GST on the jobs front under various national schemes in India, Labour Bureau data indicates otherwise.

New Delhi:
While in responseto written questions in the Lok Sabha on the impact of demonetisation and Goods and Services Tax (GST) on employment generation, the Ministry of Labour and Employment has insisted that it does not possess any data,Labour Bureau data supplied by it clearly indicates that employment generated under various national schemes fell soon after demonetisation was announced in November 2016.

Employment generation dropped under major schemes

Accordingto Labour Bureau data provided by the ministry in response to questionsin the Lok Sabha, employment generation under the Prime Minister’s Employment Generation Programme (PMEGP) fell sharply in 2017-18 in comparison to the previous year. While in 2016-17, 407,840 persons got jobs under the scheme, in the first three quarters of 2017-18, only about half as many, or 208,576, were covered by PMEGP.

Likewise, the person-days generated under Mahatma Gandhi National Rural EmploymentGuarantee Scheme (MGNREGS) also showed a comparative slide in the firstthree quarters of 2017-18 in comparison to the 23,583 lakh person-days generated in 2016-16. The figure for April to December 11, 2017 was just16,029.

While the figure for candidates placed in jobs after training under Pandit Deen Dayal Upadhayaya Grameen Kaushalya Yojana (DDU-GKY) during the first three quarters of 2017 almost kept pace with the annual average as 64,967 people were placed till December 2017 in comparison to 84,900 through the previous year, it is the data on placement of skilled and trained persons under Deendyal Antodaya Yojana National Urban Livelihood M ission (DAY-NULM) which clearly showed how the demonetisation drive had a major impact on economic activity and jobgeneration alike.

The figure of placements from April to November 2017 under DAY-NULM fell sharply to 69,255 in comparison to 151,901 during 2016-17.

Manufacturing sector took a major hit

Alook at sector-wise data during 2016-17 and 2017-18 also reveals that the manufacturing sector saw a sharp loss in jobs following demonetisation. From registering an increase of 83,000 in the October-December 2016 quarter and a subsequent 1.02 lakh in the January-March 2017 quarter, the sector witnessed a sharp decline and nearly 87,000 job loss in the first quarter of 2017-18 as the effect of demonetisation began impacting the manufacturing sector due to a crunch in liquidity leading to closure of several units. This period also witnessed a fall of nearly 3,000 in the transport sector.

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