Understanding how the current unemployment rate is calculated is crucial in analyzing the economic situation of a country. In India, the past and current unemployment rate serves as a significant economic indicator, expressing the percentage of unemployed individuals about the total workforce. This rate fluctuates based on the prevailing economic conditions, reflecting the impact of factors such as job availability, economic growth, and labor market dynamics.
How to Calculate Unemployment Percentage
The formula used to calculate the unemployment rate is relatively straightforward. It involves dividing the number of unemployed individuals by the sum of employed and unemployed individuals, and then multiplying the result by 100% to obtain a percentage. For example, let’s assume that there are 1000 unemployed individuals and 6000 employed individuals. Using this information, the calculation would be as follows: (1000 / 7000) x 100% = 14.29%.
PLFS Latest Survey on Unemployment
The Ministry of Statistics & Programme Implementation (MoSPI) has been conducting the Periodic Labour Force Survey (PLFS) since 2017-18 to collect data on Employment and Unemployment. The survey is carried out from July to June each year. According to the latest Annual PLFS Reports, the estimated Worker Population Ratio (WPR) for individuals aged 15 years and above has shown an increasing trend over the years. The WPR percentages for the years 2018-19, 2019-20, 2020-21, 2021-22, and 2022-23 are 47.3%, 50.9%, 52.6%, 52.9%, and 56.0%, respectively.
Rozgar Mela Events
To facilitate employment opportunities, Rozgar Mela events are organized nationwide, where new hires are inducted into various Central Ministries/Departments, Central Public Sector Undertakings (CPSUs), and Autonomous Bodies, including Health & Education Institutes and Public Sector Banks. The filling of vacant positions in different Ministries/Departments is an ongoing process, and all vacant posts are being filled in a Mission Mode.
As per the Annual Report on Pay and Allowances released by the Department of Expenditure, Ministry of Finance, the number of regular civilian employees in the Central Government and Union Territory administrations were 31.91 lakh, 31.15 lakh, and 30.64 lakh as of 01.03.2020, 01.03.2021, and 01.03.2022, respectively. However, State Government-wise information is not centrally maintained.
In terms of appointments in the Central Government, the Union Public Service Commission (UPSC), Staff Selection Commission (SSC), and Railway Recruitment Board (RRB) recommended a total of 1,61,550 candidates for appointment during the year 2022-23. Additionally, in the first quarter of 2023-24, the SSC and RRBs recommended 1,03,196 candidates for appointment.
According to the Department of Public Enterprises (DPE), Ministry of Finance, the total number of regular employees working in Central Public Sector Enterprises (CPSEs) was 9.20 lakh, 8.61 lakh, and 8.60 lakh during the years 2019-20, 2020-21, and 2021-22, respectively.
EPFO Indicator of Job Market
The net addition of subscribers to the Employees’ Provident Fund Organization (EPFO) serves as an indicator of the formalization of the job market and the coverage of social security benefits for the organized/semi-organized sector workforce. The net addition in EPF subscribers during the period from 2020-21 to 2022-23 is as follows: 77,08,375 in 2020-21, 1,22,34,625 in 2021-22, and 1,38,51,689 in 2022-23 (source: EPFO, Payroll data).
ABRY Creating New Employment Opportunities
The Aatmanirbhar Bharat Rojgar Yojana (ABRY) was introduced on October 1st, 2020, to incentivize employers for creating new employment opportunities and restoring lost jobs during the Covid-19 pandemic. The registration of beneficiaries under this scheme closed on March 31st, 2022. As of January 19th, 2024, a total of 60.49 lakh beneficiaries have received benefits under the ABRY scheme.
The Government’s priority is to generate employment opportunities and enhance employability. To achieve this, various measures have been taken by the Government of India. Investments in infrastructure and productive capacity have a significant multiplier effect on growth and employment. In the budget for 2023-24, the capital investment outlay has been increased by 33% to Rs. 10 lakh crore, which accounts for 3.3% of GDP. This substantial increase is essential for boosting growth potential and job creation.
Aatmanirbhar Bharat package
The Government of India has introduced the Aatmanirbhar Bharat package to provide business stimulus and mitigate the adverse effects of the Covid-19 pandemic. This package includes fiscal stimulus measures exceeding Rs. 27 lakh crore. It encompasses long-term schemes, programs, and policies aimed at making the country self-reliant and creating employment opportunities.
PM SVANidhi Scheme
To support street vendors affected by the pandemic, the Government has implemented the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme since June 1st, 2020. This scheme offers collateral-free working capital loans to street vendors for restarting their businesses. As of January 31st, 2024, 83.67 lakh loans have been sanctioned under this scheme.
PMMY Promote Self-Employment
The Pradhan Mantri Mudra Yojana (PMMY) was launched by the Government to promote self-employment. Under PMMY, micro/small business enterprises and individuals can avail collateral-free loans up to Rs. 10 lakh to establish or expand their business activities. As of January 26th, 2024, more than 46.16 crore loans have been sanctioned under this scheme.
The Government is implementing the Production Linked Incentive (PLI) schemes with an outlay of Rs. 1.97 lakh crore over a period of 5 years starting from 2021-22. These schemes have the potential to create 60 lakh new jobs.
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