India is constantly grappling with the challenge of unemployment. Being a country home to a vast young population, the data on employment becomes crucial. The periodic Labour Force Survey (PLFS), conducted by the National Sample Survey Office (NSSO), remains a significant resource in understanding the state and trends of India’s employment scenario.
The Latest Labour Force Data: Key Highlights
The PLFS data for July to September 2023 revealed some key findings about urban unemployment. Most notably, there was observed decline in urban unemployment rate from 7.2% to 6.6%. This figure breaks down into demographics to reveal a decrease in male unemployment rate from 6.6% to 6%, while the female unemployment rate saw a decrease from 9.4% to 8.6%.
An interesting metric, the Worker Population Ratio, which denotes the percentage of employed persons in the population, also displayed an increase. With regard to those aged 15 and above, the ratio increased from 44.5% to 46%. Male worker participation ratio rose from 68.6% to 69.4%, whereas it rose from 19.7% to 21.9% for females.
Trends in Labour Force Participation Rate (LFPR)
For the same period, the LFPR experienced an increase from 47.9% to 49.3%. When bifurcated into gender, the data showcases a marginal rise from 73.4% to 73.8% for males, whereas for females it exhibits a more notable increase from 21.7% to 24.0%.
Understanding the Periodic Labour Force Survey
Launched in April 2017, the PLFS provides crucial labour force data at regular intervals. The unemployment rate as per PLFS is the percentage of unemployed persons among those in the labour force. The overarching objective of PLFS revolves around estimating key employment and unemployment indicators such as Worker Population Ratio, Labour Force Participation Rate and Unemployment Rate.
Related Key Terms
Key terms related to labour force include LFPR, which signifies the percentage of people aged 15 and above who are either employed or seeking work. Worker Population Ratio denotes the percentage of employed individuals within the total population. Unemployment Rate indicates jobless persons among the labour force.
Issues Linked to Urban Unemployment
Urban unemployment in India is a multifaceted issue that includes structural unemployment, dominance of informal sector, demographic challenges, and credential inflation. Structural unemployment arises from disparity between workforce skills and industry demands. Informal sector dominance is characterized by low pay, lack of social security benefits, and job insecurity. Rapid urbanization outpacing job creation and overemphasis on educational qualifications also contribute to the problem.
Government’s Initiatives to Boost Employment
The Indian government has initiated several programs to address unemployment such as SMILE (Support for Marginalized Individuals for Livelihood and Enterprise), PM-DAKSH (Pradhan Mantri Dakshta Aur Kushalta Sampann Hitgrahi), MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act), PMKVY (Pradhan Mantri Kaushal Vikas Yojana), Start Up India Scheme and Rozgar Mela.
Future Steps to Address Unemployment
Solutions to tackle unemployment incorporate reformative education geared towards current market demands, fostering an environment beneficial for startups, formulation of pro-employment policies, investment in creative sectors, and promotion of green spaces and urban agriculture.
UPSC Civil Services Examination, Previous Year Questions (PYQs)
In the Civil Services Examination of 2013, a question related to disguised unemployment was asked, while in 2023, an analytical question on structural unemployment and the methodology adopted to compute it in India was part of the exam.
