Amid youth protests, a snapshot of India's employment rate over this decade, Pg12

Key Highlights:

• India's employment rate (ER) has broadly declined over the last decade, despite economic growth, leading to youth unrest.
• The percentage of working-age people with a job fell, with 406 million employed in 2016-17 rising to 438 million in 2025-26, but insufficient for population growth.
• CMIE data indicates a fall in ER for men from 70.5% to 64.8% and for women from 11.8% to 9.4% over the decade.
• All educational attainment groups, especially those with primary education, and most religious and caste groups, show a lower ER.
• The decline in ER is observed across most age groups, except for 25-29 years and 55-59 years.

Detailed Insights:

• Recent youth protests highlight a shift in focus from mere economic growth to the critical need for job creation in India.
• The Centre for Monitoring Indian Economy (CMIE) provides continuous employment data since 2016, offering a consistent metric compared to official surveys.
• Official data from MoSPI transitioned from Employment-Unemployment Surveys (EUS) to the annual Periodic Labour Force Survey (PLFS) in 2017-18.
• The Employment Rate (ER) is considered a more accurate indicator for India than the unemployment rate, as it accounts for the total working-age population.
• A falling Unemployment Rate (UER) can be misleading if it results from people exiting the labour force due to disillusionment, masking actual job market distress.
• Academics like Ashoka Mody argue that India's growth model is failing to create sufficient jobs and boost incomes commensurate with GDP growth.
• Global trends of increased insularity in trade and immigration, exemplified by policies like tariffs, negatively impact countries like India aiming for ambitious growth.

Key Concepts Involved:

• Employment Rate (ER): The percentage of the total working-age population that is currently employed.
• Unemployment Rate (UER): The percentage of the labour force that is actively seeking employment but unable to find it.
• Labour Force: Comprises individuals who are either employed or unemployed but actively looking for work.
• Working-age Population: The segment of the total population typically considered eligible for employment, usually above 15 years of age.