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LATEST NEWS UPDATES | Job Situation has Improved? Not so Fast! -Subodh Varma

Job Situation has Improved? Not so Fast! -Subodh Varma

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published Published on Oct 9, 2022   modified Modified on Oct 9, 2022

-Newsclick.in

The share of the working-age population that is actually working is still less than in pre-pandemic times.

The latest data on unemployment has been met with optimism, and near-celebration, especially in the mainstream media, which is straining at the leash to portray some good news about the economy under the Narendra Modi government. September’s unemployment rate fell to 6.43% from August’s 8.3%, according to the Centre for Monitoring Indian Economy (CMIE)—both in rural and urban areas. 

While undoubtedly this is good news because the people, especially the youth, have been suffering tremendously from sustained unemployment over the past several years, if you look more carefully, there is little to show that this is the beginning of the long-forgotten ‘Achhe Din’. Let’s unpack the numbers.

Labour Participation Rate Falling

The number of people who are working (the employed) or seeking work (the unemployed) put together makes up the labour participation rate when taken as a share of the total working-age population. Usually, labour participation rates increase unless there is some economic crisis. That’s because it is likely that economies will create more jobs, giving more opportunities to people as time passes. After all, that is what a good government will do.

But see the chart below, drawn from CMIE, which compares the labour participation rate over the past three years—pre-pandemic (October 2019) and current (September 2022). Overall, the rate has dropped from nearly 43% to just more than 39%.

Please click here to read more. 
 


Newsclick.in, 9 October, 2022, https://www.newsclick.in/Job-Situation-has-Improved-Not-so-Fast


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