Unemployment is still a core issue in Bihar, Pg8

Key Highlights:

• Unemployment is a major political issue in Bihar, with concerns rising from 9.1% in 2015 to nearly 21.0% in 2020.
• According to the Periodic Labour Force Survey (PLFS), Bihar's unemployment rate is 3%, lower than the national average of 3.2%.
• Bihar's Worker Population Ratio (WPR) is 46.2%, and the national WPR is 52%, indicating fewer employed people in Bihar.
• Among youth aged 15-29 years, only 28 out of 100 are employed in Bihar, the lowest among comparable states.
• Only 8.7% of workers in Bihar have regular wage/salaried jobs, while 23.8% are employed as casual laborers.
• Bihar's female WPR is only 30.1%, and for young women aged 15-29, the work participation rate is 31.2%.
• Bihar's literacy rate is 73.2% for the 5-plus age group, below the national average, hindering employment opportunities.

Detailed Insights:

• The low Unemployment Rate (UR) in Bihar is misleading due to the "Discouraged Worker Effect," where people stop seeking work.
• Compared to similar low-income states, Bihar ranks the lowest in Worker Population Ratio (WPR) and Labour Force Participation Rate (LFPR).
• The annual PLFS estimates reinforce the grim picture, with Bihar's WPR at 51.6% and LFPR at 53.2%, among the lowest in India.
• The quality of jobs in Bihar is poor, with a high percentage of workers in casual labor and a low percentage in regular salaried jobs.
• The PLFS data does not capture migration, which could provide a more accurate employment picture for Bihar.
• The lack of improvement in literacy and human capital formation has contributed to the employment crisis in Bihar.
• Despite promises of industrial revival, little has materialized, and Bihar continues to underperform in education and job creation.

Key Concepts Involved:

• Worker Population Ratio (WPR): The percentage of the population that is employed.
• Labour Force Participation Rate (LFPR): The percentage of the population either employed or actively seeking work.
• Unemployment Rate (UR): The percentage of the labour force that is unemployed and actively looking for work.
• Discouraged Worker Effect: When jobless individuals lose hope and stop seeking employment, lowering the unemployment rate.