CASE STUDY: INDIA’S LABOUR MARKET
The labour market trend which is a cause for concern
The number of unemployed people remains relatively high, both in urban as well as rural areas, with urban areas showing greater unemployment in numbers, possibly due to inadequate employment planning in urban areas. Also, low Labour Force Participation Rate (LFPR) in both rural and urban economies for the age group 18-29 is also a trend that causes concern.
These are areas are critical since they indicate (a) degree of growth in number of jobs in both rural and urban areas, and, (b) employability of youth in the prime working age group
A critical perspective on the trend
The number of unemployed people in India remains relatively high, with an average unemployment rate of 4.7% by UPS approach. The UPS measure includes, in the definition of employment and workforce, both principal and subsidiary status activities. This measure, therefore, includes not just regular employment, but also employment in the unorganized sector. We should expect that improvements in principal status employment or household well-being can and should lead to reductions in subsidiary employment.
The absence of individuals from each group is for different reasons and has different social implications. For the population under the age of 24, the low participation in the workforce may be attributed to their attending school. This feature, though sharp in both males and females between the ages of 14-19, reflecting a rapid narrowing of the gender gap till the level of secondary education.
Among rural males, a similar pattern is observed, except in the 25-29 age group, which may be attributed to the patriarchal system, hence, the male worker population ratio is unlikely to perceive any major decline in the prime age group of 25-29. Even when productive employment...