Urban Unemployment Climbs High
Urban areas people suffering from unemployment more than rural areas over the past few years. According to report of CMIE, the unemployment rate close to the 10% mark. There are the few industries like textile, tea, automobile etc. that are facing loss in its business. There is the huge market crisis in automobile sector in India that can cuts 2.5 lakh jobs in the current financial year. Urban Unemployment Climbs High and very rapidly, as many of the reputed companies like Parle, Maruti Suzuki, Tata Motors are about to Cuts Lakhs of Jobs
Unemployment rate has significantly rising in the rural & urban India. Unemployment of India has reached upto 3 years of high of 8.3 Percent on 20th August .There are most leading Indian companies such as parle & maruti Suzuki has cut Lakhs of jobs due to poor sale & down in demand.
Urban Unemployment Climbs High
The loss of demand in rural area is also affected the sales of the business in urban areas. The recent example of Indian leading biscuit maker company “Parle” has indicated that it is laying down the 10,000 employees due to poor sales & of falling demand in rural areas. In Parle, there are around 100,000 employees are working including direct & contract workers across 10 company owned facilities & 125 contract manufacturing plants. The category head of Parle as Mayank Shah said that the demand of popular biscuits brand Parle-G had been decreased after rolled out a nationwide goods & service tax (GST) in 2017 which imposed high tax on biscuit costing as low as Rs.5 or 7 a pack.
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Parle, Maruti Suzuki Cuts Lakhs of Jobs
The auto sector Industries is also facing a crisis in the past two decades. There are around 2.30 lakh jobs have been lost in this year till last on the month of July 2019.The data has released by the Society of Indian Automobile Manufacturers (SIAM).The director General of SIAM Vishnu Mathur said that it was the worst fall witnessed by the auto sector in the past 19 years.
The India’s biggest automaker Maruti Suzuki India Limited has cut the number of temporary workers to cope with slowdown in autosales. Maruti Suzuki said in email that it employed 18,845 temporary workers on average in the six months ended June 30, down 6% or 1,181 from the same period last year. The company also said job cuts had speeded since April. It was the first time the reduction has been reported in the India third largest automobile company Maruti Suzuki.
Unemployment Threat in Other Sectors
The other Industries like Textiles and Tea are also facing a crisis situation. The export of cotton has low as compared to the same month last year. The tea industry provides jobs to 10 lakh people. Industries are also suffering heavy losses due to the hike in production cost and low selling price. These factors have affected the profitability of these industries, ultimately becoming a reason for the job cuts.
So, Government must take a strong decision to safe these industries to prevent the unemployment. If the industries will not in profit, then It try to cost cutting to maintain its profitability. The main reason of unemployment that purchasing power of the customer is laying down. So, I hope this article will helps you to know the actual reason of current market situation & unemployment.
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