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LATEST NEWS UPDATES | Covid mismanagement worsened unemployment problem -Santosh Mehrotra

Covid mismanagement worsened unemployment problem -Santosh Mehrotra

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published Published on May 1, 2022   modified Modified on May 1, 2022

-Deccan Herald

What the 2020 annual Periodic Labour Force Survey data reveals is that the situation remains grim

The Covid-19 pandemic has only worsened what was already a joblessness crisis in early 2020. The third annual labour force survey (2019-20) by the National Sample Survey Office (NSSO), covering the period till June 30, 2020, told a grim story. Earlier, the NSSO had in 2017-18 reported that open unemployment had reached a 45-year high and youth unemployment had tripled between 2011-12 and 2017-18 to over 18 per cent. Thereafter, poor economic management had resulted in economic growth slowing for each quarter for nine quarters up to March 2020 – a situation only compounded by the pandemic and its economic aftermath.

What the 2020 annual Periodic Labour Force Survey data reveals is that the situation remains grim. The slight rise over the three years from 2017-18 on in labour force participation rates (LFPR) and workforce
participation (WPR) rates (measured as a share in the population of working age i.e. 15 years and over) may be seen as a positive development. But India’s LFPR at 40.9 per cent (2019-20, a rise from 38.1 per cent two years earlier) is miles short of the world average of 60.8 per cent in 2019 (which had fallen to 58.6 per cent in 2020). But a rise in the WPR and the LFPR, according to the PLFS, at a time when the economy was slowing over 2017-18 to 2019-20, does need to be explained.

In a slowing economy, distress is increasing as working age population numbers rise without jobs. When it follows pre-existing falling trends in employment and wages, the pressure on household resources becomes overbearing.

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Deccan Herald, 1 May, 2022, https://www.deccanherald.com/specials/sunday-spotlight/covid-mismanagement-worsened-unemployment-problem-1105428.html


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