The official data on recent trends in unemployment rates in urban areas are out. A report by the National Statistical Office (NSO) showed a decrease in unemployment, as well as variances between male and female participation rates. This article will explore the key findings, definitions, and types of unemployment. It will also focus on the causes of unemployment in India and the initiatives taken by the government to address this issue.
Key Findings of the PLFS: July-September 2022
According to the Periodic Labour Force Survey (PLFS), the unemployment rate among people aged 15 and above in urban areas has improved, decreasing from 9.8% in 2021 to 7.2% in the same period of 2022. The report also revealed different rates for men and women, with the former experiencing a lower rate of unemployment than the latter.
Concerning the Worker-Population Ratio (WPR), which denotes the percentage of employed persons in the population, there was a noticeable improvement. For urban dwellers aged 15 and above, the WPR rose from 42.3% in 2021 to 44.5%. There was also a disparity noted in the Labour Force Participation Rate (LFPR) among men and women.
The Periodic Labour Force Survey
The Ministry of Statistics & Programme Implementation launched the PLFS in April 2017. They aim to estimate key employment and unemployment indicators with more regularity. The survey primarily focuses on calculating these indicators quarterly for urban areas and annually for both rural and urban regions.
Understanding Unemployment
Unemployment is a state where an individual is actively seeking employment but unable to secure work. The NSO defines an unemployed worker based on their activity statuses—working, seeking, or available for work, or neither seeking nor available. The unemployment rate is the percentage of the labor force that is without work.
Types of Unemployment
There are different variations of unemployment, including disguised, seasonal, structural, cyclical, technological, frictional, and vulnerable. Each type represents different scenarios in which a worker is unemployed, whether due to overstaffing, lack of work during particular seasons, lack of skills, economic downturns, technological advancements, time lapses when changing jobs, or lack of official employment contracts.
Causes of Unemployment in India
Several social and economic factors contribute to unemployment in India. The rapid population growth and the dominance of underdeveloped agriculture sectors cause unemployment to persist. The fall of cottage and small industries has rendered many artisans jobless, and the education system’s inability to provide specialized training for new-age jobs leaves many potentially willing workers unemployed.
Government Initiatives Against Unemployment
The government has put forth several initiatives to curb unemployment, such as the Support for Marginalized Individuals for Livelihood and Enterprise (SMILE) and Pradhan Mantri Kaushal Vikas Yojana (PMKVY), among others. These programs focus on providing skills training and creating job opportunities for the marginalized population, ensuring livelihood sustainability and reducing unemployment rates.
Past UPSC Questions on Unemployment
The UPSC Civil Services Examination gives an insight into disguised unemployment. It explains that disguised unemployment is a state where productivity is low and too many workers fill too few jobs. Hence, the marginal productivity of labor is zero.
Last Modified: February 18, 2024