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Source: The post is based on the article “Our labour survey data is far from satisfactory” published in “Live mint” on 19th October 2023.
Syllabus: GS3- Economy- Employment
News: The article discusses India’s recent labor report. While initial data shows low unemployment, deeper analysis reveals job distress, falling wages, and higher joblessness among educated people. The government needs proactive growth strategies, not just temporary solutions.
About India’s recent labor report.
Unemployment Rate: Reduced to 3.2% in 2022-23 from 6% in 2017-18. However, this doesn’t always indicate general well-being due to regional variations.
Women in Workforce: Participation surged to 31.6% in 2022-23, a notable increase from 2017-18 by 10.5 percentage points.
Employment Distress:
Regular-wage jobs decreased by 2% since 2017-18.
Rise in self-employment, particularly among women, by 13 percentage points.
Real earnings declined as inflation outpaced wage growth.
Educated Workers’ Plight: Higher unemployment observed; 12.1% for postgraduates and 13.4% for graduates.
What should be done to overcome employment distress?
Infrastructure Investment: Stepped-up investment in public infrastructure is necessary to boost overall economic activity and job creation.
R&D Promotion: Engage in specific R&D programmes, like those in climate science, to push forward innovation and specialized job opportunities.
Focus on Genuine Job Creation: Make-work schemes, such as the rural employment guarantee, are temporary fixes. India needs actual, long-term employment solutions.
Urban Development: Construct new towns and cities to cater to the millions migrating for urban jobs, boosting demand for various materials and jobs.
Broad-based Growth: The government should foster growth that benefits both the less-skilled and better-qualified individuals.
Avoid Complacency: Instead of being content with superficially low unemployment statistics, there’s a need for a significant increase in job generation.
