When will the jobs come back?

In April 2017, the unemployment rate in India was just 3.76 per cent. This is ridiculously low. The unemployment rate has fallen steadily and sharply since its near-peak level of 9.6 per cent in August 2016.

Why is the unemployment rate so low when investments into new capacities have been weak for a very long time, capacity utilisation has been falling and industrial production is stagnant.

It is because the labour participation rate has been falling. In April labour participation rate was 43.6 per cent. This is significantly lower than the peak participation rate of 48.6 per cent in September