Measurement and trends

Unemployment is defined as the condition where individuals are willing to work at the prevailing wage rate but cannot find jobs.
The measurement of unemployment in India is conducted by organizations like the National Sample Survey Office (NSSO) and the Periodic Labour Force Survey (PLFS).
The unemployment rate is the percentage of the labor force that is unemployed.
Labor force participation rate (LFPR) indicates the proportion of the working-age population that is either employed or actively looking for work.
Worker Population Ratio (WPR) measures the proportion of the working-age population that is employed.
In India, unemployment is classified into different types such as structural, frictional, cyclical, disguised, and seasonal unemployment.
The Usual Principal Status (UPS) method measures unemployment based on the activity of an individual during the reference year.
The Current Weekly Status (CWS) method measures unemployment based on the activity status of an individual during a reference week.
The Daily Status Approach measures unemployment on the basis of the activity status of an individual on each day of the reference week.
Urban unemployment is more prominent in India, especially among educated youth.
Unemployment in rural areas is often disguised due to reliance on agriculture and seasonal work.
India’s unemployment rate has fluctuated over the years, with significant spikes during economic slowdowns and pandemics.
During the COVID-19 pandemic, India experienced a sharp rise in unemployment due to lockdowns and disruptions in economic activities.
Technological advancements and automation have contributed to structural unemployment.
The IT and services sector has created jobs but also increased the demand for skilled workers, leaving unskilled workers unemployed.
India has implemented several government programs to tackle unemployment, such as MGNREGA, Skill India, and Start-up India.
Seasonal unemployment is prevalent in agriculture, where jobs are available only during sowing and harvesting seasons.
Youth unemployment remains a critical issue due to a mismatch between education and job market requirements.
The gig economy has emerged as a new source of employment but often lacks job security and benefits.
India has a significant number of underemployed individuals who work part-time or below their skill level.
Regional disparities in economic development contribute to higher unemployment in certain states and regions.
Unemployment trends indicate that women face higher unemployment rates compared to men.
India’s unemployment trends are also influenced by global economic factors such as recessions and trade dynamics.
The introduction of Periodic Labour Force Surveys (PLFS) in 2017 improved the accuracy of unemployment measurements in India.
Unemployment among graduates and postgraduates is rising, highlighting the need for skill-based education.
Informal employment dominates the Indian labor market, contributing to hidden unemployment.
The Employment Guarantee Scheme under MGNREGA ensures at least 100 days of wage employment for rural households.
Skill development initiatives like Pradhan Mantri Kaushal Vikas Yojana (PMKVY) aim to improve employability.
India’s economy requires a focus on labor-intensive industries to absorb the growing workforce.
Technological unemployment is becoming a challenge as automation and AI disrupt traditional job roles.
The unorganized sector employs a significant portion of the labor force, contributing to irregular and insecure employment.
Urbanization and rural-urban migration have led to frictional and disguised unemployment in cities.
India’s unemployment rate stood at around 7.8% in 2023, with significant variations across states.
Women’s participation in the workforce remains low, contributing to gender-specific unemployment trends.
Unemployment trends indicate a need for reforms in labor laws to create a conducive environment for job creation.
The education system in India needs to be aligned with market demands to reduce educated unemployment.
Public-private partnerships (PPPs) can play a vital role in creating jobs and reducing unemployment.
Unemployment contributes to poverty, social unrest, and reduced economic productivity.
Government initiatives like Make in India aim to boost manufacturing and generate employment.
The service sector is a major contributor to employment but requires diversification to accommodate more workers.
Inclusive growth policies are essential to address the unemployment challenges in India.
India’s demographic dividend presents both opportunities and challenges in the employment sector.
Entrepreneurship promotion through schemes like Stand-up India can help create self-employment opportunities.