Unemployment Rate Down To 4.2% In 2020-21 From 5.8% 2018-19: Economic Survey

The unemployment rate in India declined from 5.8 per cent in 2018-19 to 4.2 per cent in 2020-21, as per the Economic Survey 2022-23 tabled in Parliament by Union Finance Minister Nirmala Sitharaman.

The survey stated that labour markets have recovered beyond pre-Covid levels, in both urban and rural areas, with unemployment rates falling from 5.8 per cent in 2018-19 to 4.2 per cent in 2020-21.

As per the Periodic Labour Force Survey (PLFS), the labour force participation rate (LFPR), worker population ratio (WPR) and unemployment rate (UR) in PLFS 2020-21(July-June) have improved for both males and females in both rural and urban areas compared to PLFS 2019-20 and 2018-19.

The LFPR for males has gone up to 57.5 per cent in 2020-21, as compared to 55.6 per cent in 2018-19. The female LFPR has gone up to 25.1 per cent in 2020-21 from 18.6 per cent in 2018-19. 

There is a notable rise in rural female LFPR from 19.7 per cent in 2018-19 to 27.7 per cent in 2020-21.

The Economic Survey highlighted that there is a need to broaden the horizon of measuring work, which constitutes the whole universe of productive activities alongside employment, especially for women. 

The survey recommended that a wholesome measurement of “work” may require improved quantification through redesigned surveys. 

That said, there is further significant scope to nullify the gender-based disadvantages to enable free choice of women to join the labour market. 

"Ecosystem services, including affordable creches, career counselling/handholding, lodging and transportation, etc., can further help unlock the gender dividend for inclusive and broad-based growth," it added.