If you work at least one hour a week, doing any job, day labor, or any income-generating activity, you are not considered unemployed. This definition is set by the International Labour Organization (ILO) and is accepted by most governments worldwide.
Unemployment statistics are derived from this definition to ascertain employment levels within the population.
In a nation like India, unemployment has always been a socio-economic issue, often highlighted during elections. The opposition criticizes the government for its failure to provide jobs, while the government claims to have created ample employment opportunities. But what do the numbers indicate? The government releases these statistics annually.
Recently, the Periodic Labour Force Survey (PLFS) released a new report on employment. This report covers data from July 2023 to June 2024, showing that the unemployment rate has neither increased nor decreased during this period.
How Significant is Unemployment?
Unemployment status is understood using three key indicators: the Labour Force Participation Rate (LFPR), the Worker Population Ratio (WPR), and the Unemployment Rate (UR).
LFPR indicates the proportion of the total population that is either working or actively seeking work. WPR reflects the portion of the population that is employed. UR measures the proportion of the labour force that is unemployed. An increase in the labour force and worker population, along with a decrease in the unemployment rate, is considered positive.
- LFPR Statistics:
The labour force grew by more than 10% over six years, from nearly 50% in 2017-18 to 60% in 2023-24. However, women still lag behind men in the labour force, with 78.8% men and 41.7% women.
- WPR Statistics:
58.2% of the total population is employed. This includes 76.3% men and 40.3% women. In 2022-23, 56% of the population was employed. The employment rate among women increased by 5% in one year.
- UR Statistics:
The unemployment rate remained at 3.2% for both 2022-23 and 2023-24. This is a significant decrease from 6% in 2017-18.
Source: aajtak
More Education, More Unemployment:
In our country, the highest unemployment rate is among educated youth. According to a recent ILO report, 83% of India's unemployed in 2023 were young people.
The education level among the unemployed has nearly doubled over the past two decades. The ILO report shows that in 2000, 35.2% of the unemployed were educated, a figure that rose to 65.7% by 2022.
ILO states that unemployment among Indian youth, particularly graduates, is a compounding issue. Both ILO and PLFS reports indicate that higher education levels correlate with higher unemployment rates. PLFS annual reports reveal that unemployment is lowest among those with no education (0.2%), under 5% for those up to the 12th grade, and over 12% for those with diplomas, degrees, or postgraduate education.
Some experts suggest that uneducated or less educated individuals tend to start minor businesses, whereas educated youth seek jobs matching their qualifications, leading to higher unemployment rates among them. ILO claims that there are insufficient job opportunities in the non-farm sector to employ educated and graduate youth in India.
Source: aajtak
Caste and Religion Report Card:
The report indicates that the highest unemployment rate is among Sikhs, with rates of 3.1% among Hindus, 3.2% among Muslims, 5.8% among Sikhs, and 4.7% among Christians for 2023-24. Additionally, 45% of Hindus, 37% of Muslims, 42% of Sikhs, and 45% of Christians are employed.
Interestingly, the number of Muslims either employed or seeking employment saw the highest increase. 32.5% of Muslims were in the workforce in 2022-23, rising to over 38% in 2023-24.
54% of Scheduled Tribes (ST) were employed or job-seeking, while 45% of Scheduled Castes (SC) and 44% of Other Backward Classes (OBC) had employment. Among the general category, 43% were employed.
Source: aajtak
Four Key Findings of the Report:
- Who is Working?
The report indicates that 58.4% of those employed are self-employed, 21.7% receive regular salaries, and 19.8% are day laborers.
- What Jobs do They Have?
Among the employed, 46% work in agriculture, 12.2% in trade, hotels, or restaurants, 12% in construction, and 11.4% in manufacturing.
- How Many Young People are Unemployed?
Unemployment among the 15-29 age group increased from 10% in 2022-23 to 10.2% in 2023-24, with rates of 14.7% in urban areas and 8.5% in rural areas.
- How Much Do They Earn?
Self-employed individuals earn an average of ₹12,685 per month, salaried employees earn ₹20,095 monthly on average, and day laborers earn ₹404 daily on average.
