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Resource centre on India's rural distress
 
 

Joblessness and opportunity in Tamil Nadu -Vikas Kumar, PG Babu and Poonam Singh

-The Hindu

The longer-term decline in the labour participation rate can be attributed to a host of factors

The COVID-19 pandemic has disrupted economies across the world and presented policymakers with the unenviable task of sustaining employment amidst lockdowns. However, the academic and political debates in India on unemployment, which is widely attributed to jobless growth amidst stagnation in the agricultural and manufacturing sectors, predate the pandemic. It will be useful to locate the disruption caused by the pandemic on a larger canvas so as to enable a comparative assessment vis-à-vis other recent economic shocks such as demonetisation and the introduction of the Goods and Services Tax (GST).

It would also be instructive to compare Tamil Nadu, one of India’s most industrialised States and also one of the worst pandemic-hit States, with other States that have a large manufacturing sector and are net recipients of migrants. In the absence of government data on employment for recent years, we rely on the Centre for Monitoring Indian Economy (CMIE) even though its employment data series is relatively new. Further, the reach of CMIE’s surveys was restricted by the lockdown, which affects comparison of the data for the recent months with the pre-COVID-19 period.

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