According to data from the research organisation Centre for Monitoring India Economy, India's jobless rate reached a four-month high of 8.11% in April 2023. 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.
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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 growing population will continue to be a priority for Prime Minister Narendra Modi's government, especially as he seeks a third term in office in national elections 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. “According to the most recent Annual PLFS Reports, the estimated unemployment rate on usual status for graduate persons aged 15 and up was 17.2%, 15.5%, and 14.9% in 2019-20, 2020-21, and 2021-22, respectively, indicating 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 significant increase in recent years has been critical to the government's efforts to boost growth potential and job creation. As a result, the government's capacity to create jobs will be critical in the next national elections as Modi seeks a third term.
