Economic Survey 2023: Govt Says Unemployment Rate Lowered By 1.6% In 2021 From 2019

Economic Survey 2023: Labour Force Participation Rate has increased for both males and females in both rural and urban areas.

The Economic Survey 2022-23 highlights India's quick response to the pandemic and the world's largest vaccination drive, which have helped the labor market recover beyond pre-Covid levels in both urban and rural areas, according to supply and demand-side employment data. The Economic Survey 2022-23 was tabled by the Minister of Finance and Corporate Affairs, Smt Nirmala Sitharaman in Parliament today. The Economic Survey said that India’s economic recovery from the pandemic is complete and the economy is expected to grow in the range of 6% to 6.8%

Unemployment Rate Lowered By 1.6% 

The Economic Survey states that the labour markets have recovered beyond pre-Covid levels with a decrease in unemployment rates from 5.8% in 2018-19 to 4.2% in 2020-21. The Labour Force Participation Rate has increased for both males and females in both rural and urban areas, with the largest increase being in Rural Female Labour Force Participation Rate. The share of self-employed has increased and that of regular wage/salaried workers has declined in 2020-21 compared to 2019-20. The industry of work has also seen changes with a marginal rise in workers in agriculture, a faint decline in manufacturing, an increase in construction and a decline in trade, hotels & restaurants.

The Labour Force Participation Rate for males has gone up to 57.5% in 2020-21, as compared to 55.6% in 2018-19. The female Labour Force Participation Rate has gone up to 25.1% in 2020-21 from 18.6% in 2018-19. There is a notable rise in Rural Female Labour Force Participation Rate from 19.7 % in 2018-19 to 27.7% in 2020-21.

Measurement Issues In Calculating Female Labour Force Participation Rate

The Economic Survey highlights the need for improved measurement of women's work, which goes beyond the traditional definition of labor force participation and includes unpaid domestic work. The survey notes that a narrow focus on labor force participation underestimates the contributions of women to the economy and household standard of living. The survey suggests that a more comprehensive measurement of "work" may require redesigned surveys, and the creation of an ecosystem of services such as affordable child care, career counseling, and transportation can help women participate in the labor market and drive inclusive growth.

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