PM accepts failure to check unemployment, inflation

New Delhi, Jan 3: Prime Minister Manmohan Singh on Friday said inflation remained unexpectedly high and adequate jobs were not created in the manufacturing sector during his decade long tenure.

“I am concerned that we have not been as successful as we need to be in generating employment in the manufacturing sector. This is an aspect of performance which we are working hard to correct,” he told the media.

“We need a much stronger effort in support of small and medium enterprises which can be a major source of good quality employment. Our manufacturing strategy gives high priority to this objective for the future,” he said.

Manmohan Singh said the second biggest concern on the economic front was inflation.

“We have also not been as successful in controlling persistent inflation as we would have wished,” he said.

“This is primarily because food inflation has increased. However, we should remember that our inclusive policies have put more money in the hands of the weaker sections.