Problems and prospects of employment in India

Abstract

India’s unemployment rate has significantly improved in the last few weeks, however, the paradigm shift is not only because of rising jobs but also due to the exit of a large number of people from the job market. India's unemployment rate fell to 6.67 percent in September from 8.35 percent in August, according to CMIE data. The unemployment rates for urban and rural areas in September was 8.45 percent and 5.86 percent, respectively. The fall in the unemployment rate seen in recent weeks is meaningless and misleading in the face of a falling labour participation rate and a falling trend in the employment rate. “This average has dropped to 40.45% for the period mid-August through mid-September. Rate of youth unemployment in rural areas is shown in table 2 and rate of youth unemployment in urban areas is shown in table 3. Rural areas have 17.4 percent of male population and 13.6 percent of female population unemployed. While, in urban areas 18.7 percent of male and 27.2 percent of female unemployed. Facts proved that unemployment rate is higher in urban areas with 7.8 percent compared with 5.3 percent in rural areas. Though it was proved from the facts that most of our workforce is rural based apparently suggests a higher contribution of the rural economy to GDP than that of urban economy.