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MSMEs, traders witness loss of 35 lakh jobs: survey
Why is it in news?
- The TMSME segment (Traders, Micro, Small and Medium Enterprises) has seen job losses of 35 lakh in the last four-and-half years, according to a survey by the All India Manufacturers’ Organisation (AIMO).
- Job loss of 43% was reported in the trader segment, 32% in the micro segment, 35% in small segment and 24% in medium segment, as per the survey.
- The survey, conducted by AIMO, covered over 34,000 TMSME representatives across India between October 1 and 30, 2018.
- The worst is the elimination of self-employed categories such as tailors, cobblers, barbers, plumbers, and electricians. Traders are closing down shops due to stiff competition from e-commerce sales.
- The closure of shops means loss of revenue in rental income for middle income families, it added.
- The worst-hit were sectors dominated by unorganised labour.
- These include plastic, matches, crackers, dyeing units, stitching units, stone units, tanneries, job work units and printing companies.
Possible reasons
- The year 2015-16 saw a growth in all areas of business due to high sentiment and expectations from the new leadership.
- It went down next year due to demonetisation and then again due to GST implementation.
- AIMO has provided a list of suggestions to be implemented to create job opportunities based on the results of the survey.
- According to the survey, the number of companies making profits now is lower than the the number that made profits in 2014-15.
- If 100 companies in the trader segment were making profit in 2014-15, now, only 30 are profitable. In the micro segment, it is 47, in the small segment it is 65 and in the medium segment, the number has dropped to 76.
- The survey said sectors that need immediate revival and assistance are housing, textiles, automobiles, power, match industries, stone, plastic, tannery and consumer products.
Source
The Hindu