Unemployment rate will drop below 3%, no concern for job losses: Mandaviya

Union Labour Minister Mansukh Mandaviya assured the Lok Sabha that employment generation efforts by Prime Minister Narendra Modi has led to significant reduction in the unemployment rate

Union Labour Minister Mansukh Mandaviya reassured the public on Monday that there is no need for concern about job losses. He predicted that India's unemployment rate would fall below 3 per cent in the near future.

"There is no need for concern about job losses," the labour minister assured.

Speaking during Question Hour in the Lok Sabha, Mandaviya highlighted the significant reduction in the unemployment rate. He attributed this decline to the employment generation efforts under Prime Minister Narendra Modi's government.

"The current unemployment rate is 3.2 per cent. It came down from 6 per cent in the 2017-18 period as employment generation has taken place under the Prime Minister Narendra Modi-led government," Mandaviya said.

 

Improvements in labour market indicators

Mandaviya pointed out that the labour force participation rate has increased to 44 per cent from 38 per cent in 2017-18, while the work-population ratio has risen to 40 per cent from 31 per cent over the same period. These figures indicate a healthier job market and greater employment opportunities for the workforce.

2014 के पहले दुनिया की डेटा की बात होती थी। जब से श्री @NarendraModi जी की गवर्नमेंट है तब से देश में डाटा जनरेशन की सुविधा हो, इस पर काम किया गया है। देश में अनएम्प्लॉयमेंट रेट 6% से कम होकर 3.2% हुआ है और भविष्य में 3% से भी कम होगा। pic.twitter.com/zZKD8AOywg

— Dr Mansukh Mandaviya (@mansukhmandviya) July 29, 2024

Economic Survey 2023-24 on unemployment

The recent Economic Survey for 2023-24 released last week corroborated these positive trends, showing that the unemployment rate fell to 3.2 per cent in 2022-23. The survey noted significant improvements in Indian labour market indicators over the past six years. Particularly noteworthy is the decrease in the youth unemployment rate, which dropped from 17.8 per cent in 2017-18 to 10 per cent in 2022-23. This decline has been accompanied by an increase in both the labour force participation rate (LFPR) and the worker-to-population ratio (WPR).

The survey emphasised the recovery in employment across both urban and rural areas, even under the stringent criteria of the current weekly status (CWS).

However, the survey called on the private sector to contribute to job creation, stating that nearly eight million jobs would need to be created annually until 2036. The survey also warned against an over-reliance on capital-intensive technologies like artificial intelligence, which could potentially reduce employment opportunities.