Concerning Stagnation: Unemployment Rate Stuck at 3.2% in FY24 Amid Rural Joblessness Surge | Urgent Economy & Policy Report
India’s Unemployment Rate Stagnates at 3.2% Amid Rising Labour Force
India’s unemployment rate stalled at 3.2% during the July-June 2023-24 period, ending a five-year decline, the National Statistical Office (NSO) reported on Monday. This stagnation highlights a struggling labour market, unable to keep pace with the growing workforce in both urban and rural areas.
In rural regions, the unemployment rate edged up slightly to 2.5% from 2.4% in the previous period. Conversely, urban areas saw a slight improvement, with the rate decreasing to 5.1% from 5.4%. Women’s unemployment rose to 3.2% from 2.9%, whereas men’s rate dipped slightly to 3.2% from 3.3%.
The 2023-24 PLFS marked the first time since its 2017 inception that the unemployment rate remained stagnant for a full year. Previously, employment data were released every five years based on household surveys. Back in 2017-18, the nationwide unemployment rate was much higher at 6%.
The labour force participation rate (LFPR), indicating the proportion of people working or seeking work, surged to 60.1% from 57.9% nationally. Rural areas saw their LFPR climb to 63.7% from 60.8%, while urban areas experienced an increase to 52% from 50.4%.
Examining the quality of employment, the share of regular or wage employment rose to 21.7% from 20.9%. Meanwhile, self-employment, including unpaid household work, increased to 58.4% from 57.3%.
Professor Santosh Mehrotra from the University of Bath pointed out that the labour market has not yet bounced back to pre-pandemic levels. Wage employment’s share remains significantly lower than it was before COVID-19, pushing more people into self-employment. Mehrotra emphasized that the increased labour force participation and rising self-employment indicate the economy’s inability to create sufficient quality jobs. The impacts of reverse migration during the pandemic, which saw around 50 million people return to agricultural work, persist.
Published: Sep 23, 2024 | 8:13 PM IST
Original Story https://www.business-standard.com/economy/news/jobless-rate-stagnates-at-3-2-in-fy24-as-rural-unemployment-rises-124092301119_1.html
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