Economic Survey 2022-2023 tabled by Union Finance Minister Nirmala Sitharaman in the Parliament on Tuesday states that labour markets have recovered beyond pre-COVID levels, in both urban and rural areas, as shown by supply-side and demand-side employment data. Unemployment rate fell from 5.8 percent in 2018-19 to 4.2 percent in 2020-21, it said
According to the survey, the Periodic Labour Force Survey (PLFS) shows that the urban unemployment rate for people aged 15 years and above declined from 9.8 percent in the quarter ending September 2021 to 7.2 percent one year later (quarter ending September 2022). It states that the urban unemployment rate is at a four-year low.
"This is accompanied by an improvement in the labour force participation rate (LFPR) as well, confirming the emergence of the economy out of the pandemic induced slowdown early in FY23," the Economic Survey said.
Employment in nine major sectors has increased by 10 lakh over the year
2021-22 as per the QES.
As per current weekly status (CWS), labour market indicators recovered from 2019-20 (July-June) to 2020-21, and for both males and females, with improvement in employment indicators. Region-wise, while rural labour market indicators have been improving for both males and females, the urban labour market is slightly behind pre-COVID levels in 2020-21 (July-June).
The Labour Force Participation Rate for males has gone up to 57.5 percent in 2020-21, as compared to 55.6 percent in 2018-19. Female Labour Force Participation Rate has gone up to 25.1 percent in 2020-21 from 18.6 percent in 2018-19. There is a notable rise in Rural Female Labour Force Participation Rate from 19.7 percent in 2018-19 to 27.7 percent in 2020-21.
Also Read | Economic Survey 2023: Top 10 key highlights
Quarterly urban employment data shows progress beyond pre-pandemic levels as the unemployment rate declined from 8.3 percent in July-September 2019 to 7.2 percent in July-September 2022.
Reflecting rising formalisation of employment, net addition to Employees' Provident Fund Organisation (EPFO) payroll has moved upwards after rebounding from COVID-19 with the majority share coming from the youth, the Economic Survey said. EPFO based net payroll for all industries is on the rise with 105.4 lakh in FY23 (till Nov) against 78.6 lakh in FY20.
It added that year-on-year (YoY) decline in monthly demand for Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) work is emanating from normalisation of the rural economy due to strong agricultural growth and a swift bounce-back from COVID-19.
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