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LATEST NEWS UPDATES | Why the Rise in Workforce Participation During the Pandemic Points to Distress Employment -Shiney Chakraborty, Priyanka Chatterjee and Mitali Nikore

Why the Rise in Workforce Participation During the Pandemic Points to Distress Employment -Shiney Chakraborty, Priyanka Chatterjee and Mitali Nikore

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published Published on Jul 6, 2022   modified Modified on Jul 12, 2022

-TheWire.in

Although COVID-19 had disrupted economic activity, the workforce participation rate in the last four years has gone up, significantly driven by rural women's employment.

The annual Periodic Labour Force Survey (PLFS), first launched in 2017, is one of the only official sources of employment data in the country. Marred by disruptions, the results of the last two surveys (2019-20 and 2020-21) have been eagerly awaited to understand the impact of the COVID-19 pandemic on labour markets. 

The 2020-21 PLFS shows some interesting and unusual trends, namely the increased workforce participation rate (WPR) along with a decline in the unemployment rate for both men and women. On the face of it, this is quite contradictory given the economic disruption due to the COVID-19 pandemic along with a sudden imposition of a stringent and long lockdown.   

What does the survey indicate?

Firstly, the increase in WPR over the last four years and during the pandemic was driven by rural women’s employment. Overall WPR increased from 49.6% to 55.3% between 2017-18 and 2020-21, with higher increases in rural areas and for women. Women’s WPR increased by 50% in rural areas while it increased by 17% in urban areas.

Even during the pandemic (2019-20 to 2020-21), the overall WPR rose from 53.9% to 55.3% which was entirely driven by the increase in women’s employment in rural India. Agriculture remained the biggest employer, accounting for nearly three-fourths of rural women’s employment.

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TheWire.in, 6 July, 2022, https://thewire.in/labour/why-the-rise-in-workforce-participation-during-the-pandemic-points-to-distress-employment


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