Bengaluru: It seems that demonetization was a costly exercise. As per the State of Working India (SWI) report which was released by Bengaluru-based Azim Premji University, five million people lost their jobs between 2016 and 2018. The decline in jobs started after demonetization. However, the reported added that no direct relationship can be established between demonetization and decline in jobs.
According to the report published in Times of India, apart from highly educated, less educated persons are also witnessing less employment opportunity since 2016.
Source of the data
It may be mentioned that the report is based on the Consumer Pyramids Survey of the Centre for Monitoring the Indian Economy (CMIE-CPDX), a Mumbai based company.
Trend of unemployment rate
As per the SWI report, the unemployment rate in 2018 was around 6%. It was double the rate of unemployment in 2000-2011.
Its effect was more on women as their performance is low in terms of both unemployment and labour force participation rate. They have higher unemployment and lower labour force participation rates.