India's leading economist and planning commission deputy chairperson Montek Singh Ahluwalia on Wednesday slammed the National Sample Survey Organisation report for showing fall of both employment and unemployment rates in India.
The NSSO in the report 'employment and unemployment in India' said the employment of the persons in labour force had fallen from 42 % in 2004-05 to 39.2 % in 2009-10 and unemployment rate had fallen from 2.3 % to 2 % in the same period.
It had meant that despite more than average 8 % economic growth during these give years not enough jobs were being created and the government's economic policy was not inclusive.
Ahluwalia pulled up NSSO for the self contradictory figures saying that the data collection methodology was faulty. He was furious at the NSSO officials for failing to issue a clarificatory note.
Minutes later, ministry of programme implementation secretary TC Ananth admitted that the data was confusing and the employment rate had in fact increased. "Once you break up labour force participation for women, children and subsidiary status it becomes clear employment has increased," he said.
Ananth also said that the unemployment rate was a problem as fails to take into account people who may be self employed because they don't have jobs.
The NSSO data shows consistent fall in self-employment, an indicator of that more jobs were being created because of economic growth. And, the probably reason is doubling of wages in five year period between 2005 and 2010.
The wages in urban areas was Rs 364 per day as compared to Rs 183 in 2005 whereas in rural areas it was Rs 231 as compared to Rs 112 in 2005.
As a result, about 51 % of Indians were self-employed as compared to 57 % in 2005 and 55 % in 1994. The self-employment rate was as high as 60.5 % in 1983.
Programme implementation minister, however, said the major reason for the dissatisfaction of field officers in the department was that even amounts spent on official assignment were not released until a receipt is submitted afterward.