Jobs Stagnant in Economy, Finds Survey

Hyderabad:India’s unemployment rate has stagnated at 3.2 per cent for the year 2023-24, marking the end of five consecutive years of decline, according to the latest Periodic Labour Force Survey (PLFS) by the National Statistical Office (NSO). This trend is raising concerns about the economy’s ability to generate enough jobs, particularly as the labour force continues to grow in both urban and rural areas.

In rural regions, unemployment slightly increased from 2.4 per cent in 2022-23 to 2.5 per cent in 2023-24, while urban unemployment saw a minor decrease from 5.4 per cent to 5.1 per cent. However, the overall situation remains worrying, with a notable rise in unemployment among women, climbing to 3.2 per cent from 2.9 per cent, while the rate for men decreased slightly to 3.2 per cent from 3.3 per cent.

The labour force participation rate (LFPR) also increased, reaching 60.1 per cent from 57.9 per cent in the previous year, reflecting more people either employed or actively seeking work. Self-employment continues to grow, now accounting for 58.4 per cent of the workforce, signalling a shift away from wage employment due to limited formal job opportunities.

Experts, including economist Dr Hari Ramakurti, believe that the rise in self-employment and stagnant wage employment indicate lingering effects from the pandemic. "There is a pressing need for a multi-pronged strategy that includes skill development and the promotion of entrepreneurship from an early stage," he told Deccan Chronicle.

Meanwhile, HR consultant Reema Gaur noted that companies are cautious about hiring amid market volatility, preferring contractual roles over permanent positions, limiting opportunities for job seekers. "Companies are cautious with hiring due to fluctuating market conditions and are often preferring contractual or temporary roles over permanent positions. This trend, unfortunately, leaves a significant number of job seekers with limited options," she said.

Calls for integrating entrepreneurship education into school curricula are growing, with experts like Prof. Nirmala Madhan Mohan advocating for nurturing entrepreneurial skills from a young age to foster a self-reliant economy. “Encouraging entrepreneurship at a young age can help address the job crisis. If young people are equipped with the skills and mindset to create their own opportunities, we will see a more resilient and self-sustaining economy,” Nirmala Mohan who teaches marketing at a B-school in the city, said.