Kerala GDP rate grows, joblessness rises, say economic data

[1]

A brand new development paradox has been unveiled in the Economic Review 2011 released by finance minister K.M. Mani on Saturday. The figures thereof reveal that a soaring state gross domestic product (SGDP) growth rate coexists with unrelenting unemployment.

The SGDP growth, which had hit a low of 7.22 per cent during the 2008-09 fiscal when recession was at its peak, has surged to 9.13 per cent in 2010-11. It is for the second consecutive year that the state is registering an increase in growth rate.

After the low of 7.22 per cent in 2008-09, it shot up to 8.95 percent in 2009-10. And in both the fiscals, the state has grown above the national average of 8.4 per cent. In 2010-11, the state’s growth has nearly touched the pre-recession levels of 10.09 achieved by the state in 2005-06.

However, it appears that the amazing turnaround in growth has, rather than mitigating unemployment, exacerbated it. As on August 31, 2011, a total of 43.42 lakh people had registered themselves in the employment registers.

In 2005, the unemployment level was 36.70 lakh. Thereafter the number has been increasing every year.

“The number of job seekers increased to 41.44 lakh in 2008 and it again increased to 43 lakh in 2009. It rose slightly to 43.10 lakh in 2010 and now stood at 43.42 lakh,” the ER says. Unemployment kept rising even when growth showed a healthy turnaround since 2009.

Here is another paradox. Between 2005 and 2011, the number of job seekers with a qualification of less than SSLC has declined and those equipped with SSLC and more burgeoned. Below-SSLC job aspirants shrunk to 5.86 lakh in 2011 from 6.29 lakh in 2005.

The unemployed in the other group swelled from 30.41 lakh in 2005 to 37.56 lakh in 2011.