In a bold indictment, the Congress party on Tuesday released a comprehensive analysis slamming the government’s economic stewardship for engineering unemployment amid apparent prosperity. The ‘Real State of the Economy 2026’ report lays bare the myth of job-rich growth, urging a reality check on official narratives.
Key findings from the Periodic Labour Force Survey data between 2017-18 and 2023-24 expose structural weaknesses. The manufacturing sector’s employment share eroded from 12.1% to 11.4%, services slipped from 31.1% to 29.7%, forcing a 2% rise in agriculture to 46.1% – a retreat to subsistence farming that hampers productivity.
Emerging jobs are mostly informal gigs without protections; nearly 40% of wage earners operate sans contracts, holidays, or benefits, fostering insecurity in a booming economy.
The report casts doubt on macroeconomic figures, noting IMF’s ‘C’ rating for India’s data quality. It probes inconsistencies: Official low inflation belies rising living costs, depleted savings, surging household loans, a depreciating rupee – Asia’s laggard in 2025 – and erratic FDI flows turning negative multiple times.
Rajiv Gowda, heading the Congress Research Department, emphasized during the launch that these trends reveal skewed priorities. Corporate gains multiply, inequality festers, yet formal employment lags. As 2026 unfolds, this report serves as a clarion call for reforms that put jobs and equity first, challenging the government to bridge words and reality.