Business & Government
Business loves unemployment. Because there are so many people chasing a small number of jobs, the bargaining power of the job-providers is high. Consequently, wages are depressed. Wage increases are paltry. For example, agricultural wages increased by less than 3 per cent in 2021-22 despite the inflation rate being higher. The average monthly income of an agricultural family in India was Rs 10,213 in 2019 (source: ES 2021-22), hardly sufficient for 4-5 members for food, shelter, clothing, education, healthcare and leisure. Since the bargaining power of the employed — or even the self-employed — is weak, the average income of a family rises only marginally. In a period of low growth or recession, the situation becomes worse for the average family.
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