India Labor Crisis: Unemployment rate reached 40-year high

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Turning to India. A fresh survey shows that the unemployment rate in India has reached a four decade high. The news made headlines when an Indian newspaper reported the official data, even though Prime Minister Narendra Modi's government had delayed the release due to upcoming elections. Our correspondent Shweta Bajaj reports.

This slum is right in the middle of one of the Indian capital's wealthiest areas. People who live here work in the vicinity. 21-year-old Abdul Rahim just lost his job. Till a week back he worked as a cleaner in the fanciest mall that Delhi has to offer. It's only half a kilometre away. Abdul tells me he needs a job badly.

ABDUL RAHIM UNEMPLOYED "There is so much of a problem to get a job. Even if I got less money, I would take it. Because at least then I will earn something."

Abdul Rahim is not alone. India is facing an acute job crisis. According to an official report, India's unemployment rate has climbed to 6.1 per cent. The situation on the ground is also worrisome.

According to the report, 18.7 per cent of men in Urban India aged between 15 and 29 do not have a job. For women between 15 to 29 years of age in urban India, 27 per cent are without jobs.

In a country where more than 50 per cent of the population is under the age of 25, these figures are alarming. Santosh Mehrotra is an economist who specializes in the area of labour studies and unemployment. He says that with a rising education and population, the jobs should have risen at a much higher rate.

SANTOSH MEHROTRA, CHAIRPERSON CENTRE FOR LABOUR, JAWAHARLAL NEHRU UNIVERSITY "It's not that jobs are not growing, it's just that they are not growing as fast as we would like them to grow. One of the reasons why, even though the jobs are growing and young people are not finding work, the reason is that their education level is not very good and the skill level is not very good."

What's surprising is that despite the acuteness of the problem, the Modi-led government has refused to deny or acknowledge the report. India will go to elections in 3 months and in an election year, the numbers are bad news for the Indian leader.

SHWETA BAJAJ NEW DELHI, INDIA "The Indian government has many challenges. It has to create jobs in a world that is already getting used to artificial intelligence. All these boys around me are actually here to get a handful of jobs by the Railway police force of India. All of them are unemployed."

LUV KUSH (19) UNEMPLOYED "We don't have jobs after finishing our education. Our future looks bleak."

GAURAV SINGH (22) UNEMPLOYED "We try for jobs. Many places have limited vacancies and the number of people who come for interview are at least double if not more. Few get jobs and usually those who do pay money for it."

The social impact of unemployment in urban India has already started to show. Crime in New Delhi rose by 6 per cent in 2018. The police department has blamed unemployment and unmet aspirations of the youth as the leading reason. Experts say India needs to go to war with unemployment before it becomes an even bigger crisis. Shweta Bajaj, CGTN, New Delhi, India.