The Ministry of Labour and Employment has observed a fall in the unemployment rate. The fall in the unemployment rate was from 6.0 per cent to 3.2 per cent. The ministry made this statement citing the data available in the Annual Periodic Labour Force Survey (PLFS). The Annual Periodic Labour Force Survey (PLFS) report states Unemployment Rate on usual status for persons of age 15 years and above.

During the same time period, the estimated Worker Population Ratio (WPR) has increased from 46.8% in 2017-18 to 58.2% in 2023-24. The Worker Population Ratio (WPR) is a report indicating employment during the last 7 years, including the COVID period. The data was presented by Union Minister of State for Labour and Employment, Shobha Karandlaje. She presented it in the Rajya Sabha 

The minister stated that data on Employment and Unemployment is collected through Annual Periodic Labour Force Survey (PLFS). The survey, which is conducted by the Ministry of Statistics and Programme Implementation since 2017-18. The survey period is from July to June every year. The state-wise WPR is also available on the website of the Ministry of Statistics and Programme Implementation.

Referencing the RBI data, the Minister stated that employment in the country increased to 64.33 crore in the year 2023-24. The figures were compared to 47.15 crore in 2014-15. The total increase in employment during this period works out to 17.18 crore.

Formalisation Of Workforce

The Annual Survey of Unincorporated Sector Enterprises (ASUSE) reports evidently state the changes. The changes include increase in estimated number of workers, increasing to 10.96 crore in 2022-23. The increase was compared from 9.79 crores in 2021-22, the Minister said. ASUSE exclusively measures various economic and operational characteristics of unincorporated non-agricultural establishments in manufacturing, trade, and other services sectors.

Additionally, more than 7 crore subscribers (Net) have registered with the Employees’ Provident Fund Organisation (EPFO). The figures are for the period between September 2017 and September 2024 indicating an increase in formalisation of the job market.

According to the Minister, there is an increase n the number of workers in the unincorporated non-agricultural sector. The Annual Survey of Unincorporated Sector Enterprises (ASUSE) evidently shows workers increasing from 9.79 crore in 2021-22 to 10.96 crore in 2022-23. The ASUSE survey specifically focuses on manufacturing, trade, and other services sectors.

Government Plan On Unemployment Rate

Shobha Karandlaje said that generating employment and improving employability remain top priorities for the government. Furthermore, to achieve this, various ministries and departments are implementing several schemes aimed at boosting job creation. These include those of Micro, Small and Medium Enterprises, Rural Development, Finance, and Electronics and Information Technology. The key initiatives include the Prime Minister’s Employment Generation Programme (PMEGP), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), and Pradhan Mantri Mudra Yojana (PMMY).

Additionally, in the 2024-25 Union Budget, the government announced a Rs. 2 lakh crore package. The package is aimed at providing employment, skill development, and other opportunities for 4.1 crore youth over the next five years.