Chidambaram Challenges Government Narrative on Unemployment
Former Finance Minister P Chidambaram has strongly criticized the government's position on unemployment in India. He calls the theory that unemployment isn't a significant problem both a myth and hypocritical. While officials celebrate economic indicators, Chidambaram insists joblessness remains the darkest stain on India's economic body.
Massive Vacancies Tell a Different Story
Chidambaram points to substantial data showing widespread job vacancies across multiple sectors. He questions how anyone can claim there's no unemployment when thousands of positions remain unfilled.
In the education sector alone:
- Central universities had 27% teaching posts and 47% non-teaching posts vacant as of April 2024
- Kendriya Vidyalaya Sangathan reported 7,765 vacant teaching positions
- Navodaya Vidyalaya Samiti showed 4,323 teaching posts unfilled
Government and security sectors face similar shortages:
- Central Armed Police Forces have 25,487 constable positions empty
- Rajasthan reports 10,644 vacancies for LDC/Clerk Grade II posts
- Bihar shows 12,199 job openings
- Uttar Pradesh has 60,244 constable positions unfilled
Healthcare and Banking Sectors Affected
The healthcare system demonstrates significant staffing gaps according to Chidambaram's analysis. Twenty-one AIIMS institutions have 1,731 vacant faculty positions. In Kendrapara district of Odisha, 805 posts for doctors and paramedics remain unfilled against 1,087 filled positions. Tamil Nadu reports 2,255 vacancies for staff nurses.
Banking, traditionally seen as secure employment, shows concerning patterns. Public sector banks continue to operate with numerous unfilled positions despite offering competitive compensation packages.
Youth Disengagement from Employment Opportunities
Chidambaram highlights the PM Internship Scheme's performance as evidence of deeper issues. Over two rounds, companies made 165,000 offers, but only 20% were accepted. Among those who accepted, one-fifth left before completing their internships. This suggests nearly 140,000 offers went unclaimed.
Young graduates from lower-middle-class backgrounds, having completed higher secondary education or undergraduate degrees, appear increasingly disengaged from traditional employment pathways.
Historical Factors Exacerbating Current Crisis
Chidambaram traces current employment challenges to two major events. First, demonetization in 2016 caused what he calls a "man-made, self-inflicted grave injury." While currency circulation recovered, the policy reportedly closed thousands of small and medium businesses, destroying numerous jobs.
According to the All India Vyapar Mandal, India had approximately 625 million small businesses in 2016. Nearly 48% have closed in the last decade.
Second, the COVID-19 pandemic delivered another severe blow. A 2022 survey estimated 14% of Micro, Small and Medium Enterprises permanently closed due to pandemic effects. Government data indicates 75,000 registered MSMEs shut down between July 2020 and February 2025.
UNCTAD estimated as many as 47% of MSMEs in India were permanently or temporarily closed as of February 2022.
Rural Employment Concerns
Chidambaram expresses particular concern about rural employment policies. He warns that replacing MGNREGA with what he describes as a "supply-driven, guarantee-less, funds-constrained scheme" will worsen conditions for rural poor.
Many rural households, especially women, face potential loss of supplemental income. Workers may encounter unemployment or under-employment at distress wages under the new approach.
Contrasting Economic Indicators
The former finance minister acknowledges positive economic data, including retail inflation at 1.33% and estimated GDP growth of 7.4% for 2025-26. However, he argues these indicators mask underlying employment challenges.
Chidambaram maintains that the government's self-congratulatory stance ignores the persistent reality of joblessness affecting millions of Indians across urban and rural areas.
