India’s Unemployment At Record Low, Labour Market Being Transformed.
India’s unemployment rate is at a record low and the country’s labour market is undergoing a structural transformation, a report said on Tuesday.
India’s unemployment rate is at a record low, India’s labour market is undergoing a deep structural transformation with self-entrepreneurship across all echelons and higher educational attainment emerging as key enablers.
It rued that the jump in self-employed populace within the employment estimates (57.3 per cent in FY23 now against 52.2 per cent in FY18) with main traction coming from rising share of household helpers evidentially has been wrongfully interpreted by labour economists and others as a signal of shrinking employment opportunities.
Increased Female Labour Participation: This has come along with an increase in Labour Force Participation Rate from 36.9% to 42.4%, as Female Labour Force Participation Rate far outstripped overall gain
The government’s emphasis on entrepreneurship through the Prime Minister’s Mudra Yojana (PMMY) and post-pandemic schemes like PM-SVANidhi for those at the bottom of the pyramid is “imparting a structural transformation in labour markets in India through formalisation of credit for such family enterprises.
Earnings have increased across all categories, the report said, adding that with primary subsistence needs like food, shelter, medical needs being taken care of by the government through free ration for 80 crore people, PMAY and Ayushman Bharat, apart from additional state schemes, such people are making a clear trade-off between earnings and working in family enterprises.
