The Job Question – on unemployment data

Source: The post is based on the article “The Job Question– An extensive study finds troubling facts hidden in good headline employment numbers” published in “Times of India” on 25th September 2023.

Syllabus: GS3- Economy- Employment

News: This article says India’s economy recovered well after the pandemic with a 9.1% rise in GDP. But, jobs, especially for women and young graduates, didn’t see the same recovery. Many women are in unpaid, self-employment roles. Youth unemployment is high, especially for educated people, suggesting many jobs are not quality. The article suggests this issue needs attention for India’s future development.

How has India’s economy recovered?

Economic Recovery

India’s GDP rose 9.1% in 2021-22, marking a sharp recovery and surpassing pre-Covid levels to ₹149.25 lakh crore.

Employment Trends

The unemployment rate fell to 6.6% in 2021-22, over two percentage points lower than 2019-20, showing increased employment post-Covid.

Employment data showed an increase in both men and women working post-Covid.

Women’s Employment

While more women are working, many are in self-employment and unpaid roles, indicating a structural deterioration in job quality for women.

Youth Unemployment

The unemployment rate for educated youth is over 20% until the age of 29, highlighting the lingering issue of job scarcity and quality for the young population.

Why addressing employment issues crucial for India’s development?

Importance of Women’s Employment: Addressing women’s employment is crucial as many are relegated to self-employment and unpaid work, reflecting structural deterioration in women’s job quality.

Youth Unemployment Concerns: Addressing this issue is vital to harness the potential of the young population.

Economic Stress: The 2% lower inflation-adjusted monthly earnings in 2021-22 compared to 2017-18 signal underlying economic stress, necessitating attention to job quality and opportunities.

Contribution to Development: Addressing these employment concerns is indispensable for leveraging the contribution of women and the youth, critical components for propelling India towards becoming a developed economy.