Unemployment rate dips in first quarter of 2022: survey

GS Paper 2, Employment, Human Resources.


India’s Labour Structure:

In India, there are several types of unemployment:

Unemployment in Disguise: more individuals are employed than are actually required. It is largely found in India’s agricultural and unorganised sectors.

Seasonal Joblessness: happens during specific times of the year. Agricultural labourers in India rarely have employment all year.

Structural Unemployment: caused by a mismatch between the jobs offered in the market and the abilities of the available employees.

Many individuals in India are unemployed because they lack the necessary skills, and training them is difficult owing to a lack of knowledge.

Cyclical Unemployment: It is a product of the business cycle, in which unemployment rises during recessions and falls during expansions. In India, cyclical unemployment is small. It is a phenomenon encountered mostly in capitalist economies.

Unemployment Due to Technology: It is the loss of jobs as a result of technological advancements.

According to World Bank data from 2016, the share of employment threatened by automation in India has increased by 69 percent year on year.

Frictional Unemployment: Frictional unemployment, also known as Search Unemployment, refers to the time gap between jobs while an individual is looking for a new work or changing occupations.

It is sometimes referred to as voluntary unemployment since it is not caused by a lack of jobs, but rather by employees leaving their positions in pursuit of better chances.

Vulnerable Employment: This refers to those who work informally, without appropriate job contracts, and hence without legal protection. These people are classified as “unemployed” since no records of their job are kept. It is a major source of unemployment.

Unemployment Causes:


Rate of Labour Force Participation (LFPR):

The Importance of LFPR:

According to data from the Centre for Monitoring Indian Economy (CMIE), India’s labour force participation rate (LFPR) has dropped to 40% from an already low 47 percent in 2016. This indicates that not only is more than half of India’s working-age population (15 years and older) opting out of the labour market, but that this proportion is growing.

Who keeps track of India’s employment data?

It collects information on a variety of factors, including the degree of unemployment, the types of employment and their respective shares, the earnings obtained from various sorts of occupations, the number of hours worked, and so on.

What are the statistics for women?

How does the Actual Unemployment Scenario differ from the Data Presented?

Despite this, the number of jobless people grew by 2.3 million between 2017-18 and 2018-19, owing mostly to an increase in the number of job searchers (52.8 million) during the same period.

There has been no rise in the share of industry and services in total employment from 2017-18 to 2019-20. This suggests that the agricultural labour shift is not taking place.

Government Initiatives:

What Further Actions Are Possible?