Employment : Job loss in 2 years

Indian Economy: Series of job losses witnessed by the economy in multiple sectors in the last 2 years.

There is hardly any growth in private investment, private consumption and exports.

The growth in economy is fuelled by government spending only.

Exports and production is down due to slump in both external and domestic demand

Demonetization and transition to GST has hit small players

Labor issues and cost of production is also causing structural issues in the sector

Most of the units that have been shut in the sector belong to power loom textile

The government does not capture data from the small and medium scale textile sectors; hence the distress in these areas is not visible.

Capital goods firms are struggling as most of the downstream sectors are saddled with excess capacity and low demand.

Labour bureau’s Quarterly Employment Surveys (QES) are also showing downslide in employment growth because of the layoffs in IT/BPO and financial services sector, which were earlier the key drivers of growth in these surveys.

The scheme was introduced in the year 1986

Aim: to provide relief to workers rendered jobless due to permanent closure of non-SSI (Small Scale Industry) textile mills in private sector

Relief: workers who have suffered job loss are given wages for three years on tapering basis

This scheme has been merged under Rajiv Gandhi Shramik Kalyan Yojana in 2017

Introduced in 2005

This is an unemployment benefit scheme when the unemployment is caused due to closure of a factory or permanent invalidity arising out of non-employment injury

The unemployment benefit is provided for the period of 12 months

This also covers medical care for the beneficiary and the beneficiary’s family