Unemployment rate shows declining trend: Govt

On Thursday Government data from the Periodic Labour Force Survey (PLFS) shows that the unemployment rate is decreasing in the country, Labor and Employment Minister of State Rameswar Teli said in the Rajya Sabha.

To answer Congress leader Amee Yajnik’s question, the Minister of Labour and Employment stated that the anticipated Unemployment Rate (UR) for people aged 15 and above was 5.8% in 2018-19, 4.8% in 2018-2021, and 4.2% in 2020-21, all based on the PLFS report.

The Ministry of Statistics and Program Implementation (MoSPI) is conducting the PLFS from 2017-18, and the PLFS survey period is July to June of next year.

Teli’s reply came when Yajnik asked: “whether the unemployment rate of the country has increased to 7.80 per cent in June as per CMIE report, in which 13 million jobs have been lost mainly in the agriculture sector”.

“Many private companies, bodies and research organizations conduct different surveys based on their own methodology, CMIE is one amongst them. The official data source on Employment and Unemployment is the Periodic Labour Force Survey (PLFS),” said the Minister.

According to him, the agricultural industry employed 42.5% of all workers in 2018-19, 45.6% of all workers in 2019-20, and 46.5% of all workers in 2020-21, indicating an upward trend in employment.

In addition, the Minister provided information on the normal situation for rural residents aged 15 and over from 2018-19 to 2020-21, including estimates of the Unemployment Rate (UR) and Worker Population Ratio (WPR).

In 2018-2019, the unemployment rate was 5%; in 2019-2020, it was 3.9%; and in 2020-2021, it was 3.3%.

There were 48.9 per cent of workers in 2018-2019, 53.3% in 2019-2020, and 55.5 per cent in 2020-2021, according to the report.

The Minister further quoted the data, saying it indicates that “in the rural areas unemployment rate has declining trend and on the other hand, Worker Population Ratio has an increasing trend, indicating the increase in employment”.

The estimated Worker Population Ratio (WPR) on usual status for persons of age 15 years and above was 47.3 per cent, 50.9 per cent and 52.6 per cent during the years 2018-19, 2019-20 and 2020-21, respectively, indicating the increasing trend in employment.

He said, “Employment generation coupled with improving employability is the priority of the government”.

Accordingly, Teli said, the government of India has taken various steps to generate employment in the country like the announcement of the Atmanirbhar Bharat package to provide stimulus to business and mitigate the adverse impact of Covid 19.

Under this package, the government is providing a fiscal stimulus of more than rupees twenty-seven lakh crore.

This package comprises various long-term schemes, programmes and policies for making the country self-reliant and creating employment opportunities.

The Aatmanirbhar Bharat Rojgar Yojana (ABRY) was launched with effect from October 1, 2020, to incentivize employers for the creation of new employment and restoration of loss of employment during the Covid-19 pandemic, said the Minister, adding the terminal date for registration of beneficiaries was March 31 this year.

As of July 13, this year benefits have been provided to 59.54 lakh beneficiaries.

Pradhan Mantri Mudra Yojana (PMMY) is being implemented by the Government for facilitating self-employment, Teli said. Under PMMY, collateral-free loans up to Rs 10 lakh are extended to micro and small business enterprises and to individuals to enable them to set up or expand their business activities.

Up to July 8 this year, 35.94 crore loans were sanctioned under the scheme.

He also mentioned that Budget 2021-22 launched Production Linked Incentive (PLI) schemes, with an outlay of Rs 1.97 lakh crore, for a period of 5 years starting from 2021-22. The PLI schemes being implemented by the Government have the potential for creating 60 lakh new jobs.

All these initiatives are expected to collectively generate employment in the medium to long term through multiplier effects.


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The government is implementing Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi Scheme) since June O01, 2020 to facilitate collateral-free working capital loans to street vendors to restart their businesses, which were adversely impacted during the Covid 19 pandemic.

As of July 11, 2022, 33.34 lakh loans amounting to EUR3,615 Crore have been disbursed to 30.26 lakh beneficiaries under the scheme.

The Government of India is encouraging various projects involving substantial investment and public expenditure on schemes like Prime Minister’s Employment Generation Programme (PMEGP), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), and Pt. Deen Dayal Upadhyaya Grameen

Yojana (DDU-GKY) and Deen Dayal Antodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) etc. for employment generation.

Further, the Ministry of Skill Development and Entrepreneurship (MSDE) is implementing the National Apprenticeship Promotion Scheme (NAPS) and Pradhan Mantri Kaushal VikasYojana (PMKVY) to enhance the employability of youth.

Besides these initiatives, the Minister said, various flagship programmes of the Government such as Make in India, Start-up India, Stand-up India, Digital India, Smart City Mission, Atal Mission for Rejuvenation and Urban Transformation, and Housing for all are also oriented toward generating employment opportunities.

Roy Walsh

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