India’s Unemployment Rate Rises to Four-Month High in April 2023:
India’s unemployment rate climbed to a four-month high of 8.11% in April 2023, according to data from the research firm Centre for Monitoring India Economy. The nationwide joblessness rate rose from 7.8% in March, with urban unemployment increasing to 9.81% from 8.51% in the same period. Rural unemployment, however, fell marginally to 7.34% in April from 7.47% a month ago.
Labour Participation Increases in April:
Despite the rise in unemployment, India saw its labour force participation surging by 25.5 million to 467.6 million in April, boosting the overall participation rate to 41.98%. Creating jobs for India’s burgeoning population will remain a key challenge for Prime Minister Narendra Modi’s government, particularly as he looks to a third term in office in national elections due next summer.
Graduate Unemployment Shows a Declining Trend:
Minister of State for Labour and Employment, Rameswar Teli, stated in March that the unemployment rate among graduate degree holders shows a declining trend, according to the annual Periodic Labour Force Survey reports. The data on Employment and Unemployment is collected through the PLFS, which is conducted by the Ministry of Statistics & Programme Implementation. “As per the latest available Annual PLFS Reports, the estimated unemployment rate on usual status for graduate persons of age 15 years and above was 17.2%, 15.5% and 14.9% during 2019-20, 2020-21 and 2021-22, respectively, which shows a declining trend in the unemployment rate of graduate degree holders,” Teli said.
Investments in Infrastructure and Productive Capacity to Boost Job Creation:
According to the Minister of State for Labour and Employment, investments in infrastructure and productive capacity have a large multiplier impact on growth and employment. The budget for 2023-24 proposed to increase capital investment outlay steeply for the third year in a row by 33 per cent to Rs 10 lakh crore, which would be 3.3 per cent of GDP. This substantial increase in recent years is central to the government’s efforts to enhance growth potential and job creation. As such, the government’s ability to create jobs will be crucial in the upcoming national elections as Modi looks to secure a third term in office.