The unemployment rate in India has seen a significant decline, dropping to 3.1% in 2022-23 from 4.1% in 2021-22. This decrease reflects improved job availability across various sectors. In rural areas, unemployment fell to 2.4%, while urban unemployment decreased to 5.4% during the same period.
When examining unemployment by gender, rural women experienced a lower unemployment rate of 1.8% compared to rural men at 2.7%. In contrast, urban female unemployment was notably higher at 7.5%, while urban males faced a rate of 4.7%. These figures highlight the persistent gender disparities in employment opportunities.
The unemployment rate, calculated based on the “usual status” for individuals aged 15 years and above, has shown a consistent decline for five consecutive years since the survey's initiation in 2017. This trend is encouraging, yet it raises questions about the nature of employment being created.
The labour force participation rate (LFPR) has also shown growth, reaching 57.9% in 2022-23, up from 55.2% in the previous year. This increase indicates a rising number of individuals actively participating in the workforce. Specifically, rural LFPR experienced a notable rise, reaching 60.8%, while urban LFPR improved to 50.4%.
Despite the promising decrease in unemployment, the quality of employment raises concerns. The percentage of individuals in regular wage employment fell to 20.9% in 2022-23, down from 21.5% in 2021-22. On the other hand, self-employment, which includes unpaid household tasks or small businesses, increased to 57.3% in the recent period, up from 55.8% the year prior.
While the drop in unemployment is a positive development, the rise in self-employment and the reduction in regular wage employment suggest underlying issues regarding job quality. As India navigates these challenges, it is crucial to continue monitoring these trends to ensure sustainable employment growth.
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