why rate of employment so high in India?
Answers
At 7.2%, India's unemployment rate in Feb worst in 29 months; labour force down 25.7 million: CMIE.
The latest news on the unemployment front is a cause for concern for the Modi government, long criticised for jobless growth after making it a key electoral promise in 2014. According to data compiled by the Centre for Monitoring Indian Economy (CMIE), the unemployment rate rose to 7.2% in February 2019, the worst in 28 months. Meanwhile, the labour force is down 25.7 million since September 2016 and the number of employed persons has declined by 18.3 million in the same period.
while the unemployment rate has shot up from 5.9% in February 2018 and is marginally higher than in January (7.1%), the labour participation rate - the proportion of the working age population, comprising those over 15 years of age, that is either employed or unemployed but actively looking for a job - has ironically been falling.
According to Mahesh Vyas, head of the Mumbai-based think-tank, the falling labour participation rate implies that lower proportion of the working age population is willing to work. The total number of employed persons in February 2019 is estimated at 400 million against 406 million in the year-ago period and 407.5 million employed in February 2017.
Answer:
Besides the farm sector letting go of workers, the deterioration in labour market conditions across urban and rural regions also led to higher unemployment. Meanwhile, urban India saw its unemployment rise from 7.1 per cent to 8.8 per cent.