No Need For Concern About Job Losses: Labour Min On Unemployment Crisis

"There is no need for concern about job losses," said Union Labour Minister Mansukh Mandaviya. Speaking during Question Hour in the Lok Sabha, he predicted that India's unemployment rate will fall below 3 per cent in the near future. 

The minister highlighted the significant reduction in the unemployment rate, attributing 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 the employment generation has taken place under the Prime Minister Narendra Modi-led government," Mandaviya said.

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.

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 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, it 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 reduce employment opportunities.