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LATEST NEWS UPDATES | The myth of 15 million jobs -Mahesh Vyas

The myth of 15 million jobs -Mahesh Vyas

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published Published on May 1, 2018   modified Modified on May 1, 2018
-The Indian Express

Incomparable data sets, cherry-picking, and dubious statistical analysis are behind the claims of robust employment growth. Only 1.4 million jobs were added in 2017.

Surjit Bhalla has invented an estimate that 15 million jobs were created in 2017 (‘Robust job growth, not fake news,’ IE, April 28). This is an invention; it is not a discovery or an inference by honest statistical analysis. It is an invention because Bhalla unnecessarily patches selective estimates of two completely incomparable sources of data on employment. Note that the two sources are completely incomparable and the patches are of cherry-picked data — apparent selections of convenient estimates from two different sources.

Further, there is no compelling reason to be so selective because both sources provide complete data to draw independent inferences.

Bhalla presents data on two age groups — 15-24 years and 25-64 years. He has chosen to disregard people of 65 years and above although 16 million of these were employed during early 2016. So, we have two age groups — 15-24 and 25-64 years. The stated reason for this division is because, “when you have increased enrolment in education … employment (and labour force) definition should include the fact that you are attending school or college’’.

I don’t get that reasoning. It is more likely that the division is just the convenient one to get the desired results.

CMIE provides data on employment by age-brackets in its “Statistical Profile”, which is released after the completion of every wave of its Consumer Pyramids Household Survey (CPHS). Data from six such waves are freely available at http://unemploymentinindia.cmie.com. There are 10 age brackets of five years each from 15-19 through 60-64 and then there is an 11th age bracket of greater than 64 years age.

Bhalla picks data for the age groups 25-64 from here and ignores the data on the age-groups 15-24 and greater than 64 years. Why were these age brackets picked and why were the others not? This was cherry-picking of selective data that suits the objective of the author.

Please click here to read more.

The Indian Express, 1 May, 2018, http://indianexpress.com/article/opinion/columns/pm-narendra-modi-india-job-growth-unemployment-rate-economy-demonetisation-bjp-5157708/


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