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To achieve equitable economic growth and to broaden     Our estimates using the annual PLFS survey show that the
        consumption demand, adequate job opportunities for those   overall employment in India increased by a healthy 153.4 million    Net addition to employment (million)                   Female Labor Force Metrics for 15 years
        who choose to work is critical. It is also important for meeting   in the seven-year period between 2017-18 and 2023-24,           between 2017-18 to 2023-24                             and above (2017-18 vs. 2023-24)
        the aspirations of India’s youth and for inclusive development.   translating into employed people to working age population ratio
                                                                rising from 35 per cent to 44 per cent in the comparable period.     160.0                         153.4                                              2017-18  2023-24
        India with a population of 1.45 billion has overtaken China as                                                               140.0
        the most populous nation as per the latest data from the UN   The above-mentioned gain in employment is attributable to an                      112.8                              Labour Force Participation Rate (LFPR)    23.3%   41.7%
        Population Statistics database. Our analysis shows that India   increase of 40.6 million in jobs and 112.8 million in the    120.0                                                 Workforce Participation Rate (WPR)    22.0%   40.3%
        will add another 133 million people to the working age group   self-employed category over the seven-year period. Hence,     100.0                                                 Unemployment Rate (UR)     5.6%     3.2%
        of 15-64 years between 2025-50 as compared to reduction of   essentially, the rise in employment numbers was mainly led by    80.0
        242 million in China. A whopping 18 per cent of the     a sharp rise in the self-employed category, with net jobs                                                                  Source: PLFS report 2017-18 & 2023-24
        incremental global workforce over the next two and a half   contributing only 26.5 per cent of the total pie.                 60.0    40.6
        decades will come from India.                                                                                                 40.0
                                                                                                                                      20.0                                                THE SIGNIFICANT RISE IN THE FEMALE
        However, it is prudent to note here that a rise in India’s                                                                     0.0                                                LABOUR FORCE PARTICIPATION RATE (LFPR)
        working-age population is necessary but not sufficient for it to   UNEMPLOYMENT RATE HAS MODERATED                                    Jobs       Self      Total                  SINCE 2017-18 IS PROMISING, AS IT
        sustain its economic growth. If India does not create enough   SHARPLY TO 3.2 PER CENT IN FY24 FROM                                            employed                           PROVIDES A STRONG BOOST TO WOMEN-LED
        jobs and its workers are not adequately prepared for those   6.0 PER CENT IN FY18, TRANSLATING INTO                                                                               DEVELOPMENT IN THE COUNTRY
        jobs, its demographic dividend may turn into a liability.  UNEMPLOYED POPULATION FALLING TO
                                                                   16.9 MILLION FROM 23.6 MILLION IN THE                                       Breakup of Jobs Creation
        In India, the employment data gives information only on the   COMPARABLE PERIOD                                                                                                The Government of India has launched several initiatives to
        net addition to employment which is defined as the difference                                                                                                                  promote women empowerment and gender equality. Programs
        between employment (self-employed + jobs) added and lost                                                                                                                       like Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Stand-Up India,
        over a specified period. It does not provide data on new job   The rise in jobs ties in with the decline in the unemployed                          19.2                       and MUDRA Yojana have been pivotal in enhancing women's
        hiring and jobs losses separately and the same is true for   labour force in the economy during the seven-year period. The              21.4                                   employment. The National Rural Livelihoods Mission has
        self-employed as well. The estimates for job creation   unemployment rate moderated from 6.0 per cent to 3.2 per                                                               connected around 9 crore women with self-help groups, boosting
        presented here, thus, reflect the net impact of new job hiring   cent in the comparable period, translating into unemployed                                                    self-employment. These schemes' holistic approach encompasses
        minus jobs lost.                                        population declining to 16.9 million in 2023-24 from 23.6                                                              training programs, providing accessible loans, thereby promoting
                                                                million in 2017-18.                                                                                                    education, skill development, and financial inclusion among the
                                                                                                                                            Casual Labour  Wage/ Salaried              women. Consequently, there has been an increase in female
                                                                The sharp rise in self-employment category is attributed to an
          The overall employment                                increase in self-employment in agriculture to the tune of 78.5          Source: Various rounds of PLFS and CII Research  labour force participation rates, as evidenced by the data.
           numbers                                              million in the seven-year period, translating into a share of     Female participation in                              However, there is a greater scope to further boost female labour
                                                                more than 70 per cent to the overall increase in self-employed
                                                                                                                                                                                       force participation and employment outcomes. Increasing the
                                                                workers.
                                                                                                                                                                                       labour force participation rate of women can help capitalise on
        Employment = jobs (salaried plus                        With regard to pattern of job creation, it is noteworthy to       labour force                                         the untapped economic potential of a very large section of the
                                                                                                                                                                                       population, and be a force multiplier for the socio-economic
        casual) + self-employment                               mention the trend shifted in favour of wage/salaried jobs as                                                           development of the country.
                                                                opposed to a pre-dominance of casual jobs in the years before.
                                                                Nearly 52.7 per cent (21.4 million) of the increase of 40.6    Women-led development is a cornerstone to India's progress.   An examination of the relationship between female labour force
        FY18-FY24: Net addition to employment = 153.4 million   million in addition to jobs came from wage/salaried jobs. This   The Central Government has adopted a comprehensive    participation rates (LFPR) and education levels provides both
                                                                mirrors the rise in formalization in the economy. Casual jobs   approach to empower and support Indian women across    concerning and encouraging insights. The data shows that as the
        FY18-FY24: Net addition to jobs = 40.6 million          which had been increasing in a secular trend since 2017-18     various sectors—from agriculture to technology, and from   level of education increases, the LFPR tends to moderate.  While
        FY18-FY24: Net addition to self-employment = 113.0 million  witnessed a sequential contraction for the first time in   self-employment to high-end jobs. Since 2017-18, there has   50.4 per cent of non-literate women are part of the labour force,
                                                                                                                               been a notable increase in the female Labour Force
                                                                2023-24 as the casual jobs shrunk by 5.4 million.                                                                      this percentage drops sharply to 17.9 per cent for women with
                                                                                                                               Participation Rate (LFPR) and female Workforce Participation
                                                                                                                               Rate (WPR), underscoring the progress towards a Viksit Bharat.  secondary education and 25.0 per cent for women with higher
                                                    Employment Trends                                                                                                                  secondary education. However, there is a positive trend among
                                                                                                                               Over the past seven years, the female labour force      women with education beyond the secondary level. The LFPR for
            (in million)   Self - Employed (A)   Casual Labour (B)   Wage/ Salaried (C )   Total jobs (B+C)   Employment [A+(B+C)]  participation rate (LFPR) for those aged 15 and above has   women with a graduation degree stands at 38.4 per cent, and for
                                                                                                                               surged from 23.3 per cent in 2017-18 to 41.7 per cent in   those with postgraduate degrees and beyond, it rises to an
            2017-18        194.5            85.0              92.8              177.8          372.3                                                                                   impressive 51.1 per cent.
                                                                                                                               2023-24. This significant rise is primarily driven by rural areas,
            2018-19        198.3            91.7              90.6              182.3          380.5                           where the female LFPR increased from 24.6 per cent to 47.6
            2019-20        228.5            100.8             97.8              198.6          427.0                           per cent. Urban female LFPR also saw an increase, albeit at a   Women with lower education levels often join the casual labour
                                                                                                                                                                                       force out of necessity, while those with higher education enter the
            2020-21        243.0            101.8             92.2              194.1          437.1                           relatively moderate pace. Additionally, the workforce
                                                                                                                               participation rate (WPR) nearly doubled from 22.0 per cent to   labour force out of choice to secure formal jobs, resulting in
            2021-22        255.9            104.1             98.6              202.7          458.6                           40.3 per cent, while unemployment fell from 5.6 per cent to   higher LFPR at both low and high ends of educational attainment.
            2022-23        288.1            109.6             105.1             214.7          502.7                           3.2 per cent during the same period. These trends indicate a   This trend highlights the importance of investing in higher
            2023-24        307.3            104.2             114.2             218.4          525.8                           growing willingness among women to work, search for, and   education for women for unlocking the full potential of the female
                                                                                                                               secure employment opportunities, along with an increase in   workforce. By fostering educational attainment, society can ensure
            Source:  Various rounds of PLFS and CII Research                                                                   employment opportunities.                               that more women not only join the workforce but also excel in
                                                                                                                                                                                       roles that maximize their skills and capabilities.

        16   QUARTERLY JOURNAL OF ECONOMICS                                                                                                                                                                       QUARTERLY JOURNAL OF ECONOMICS  17
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