PLFS Report demonstrates that the labour market is recovering following the pandemic backlash.
In India, the job market is recovering well and the unemployment rate has gone to its lowest in 2018. As per the Periodic Labour Force Survey (PLFS) published by the National Sample Survey Office (NSSO), the nature of employment has been improving by a large margin as the nation is still recuperating after the economic upheaval that the pandemic has inflicted. The report also mentions that since the lockdowns had made many migrant workers go back to the villages, they are now returning to the urban areas to seek employment.
Economic Growth Gains Ground.
By the NSSO releasing GDP data in 2021 22, it was clear that the Indian economy had recovered more than it was before the pandemic as it was severely hit by 6.8% in 2020 21. But, there was still a question mark as to whether the pandemic had permanently hurt the labour market in India.
This is optimistically answered in the latest PLFS 202122 report, published on February 24. It validates the fact that the employment situation in the country is mostly cured with increasing non-farm jobs and less reliance on the agricultural jobs.
Five-Year Low in the Unemployment Rate.
In the report, it can be seen that the rate of unemployment per annum had decreased to 4.1% in 2021-22, the lowest rate since the initial survey of the PLFS in 201718. It is a spectacular change to the 6.1% rate in 2017-18 which was the highest in 40 years.
Such a fall is an indication of a healthier working environment and indicates greater trends of strong hiring in the rural and urban sector. This is a good omen to the government as the 2024 national elections are on the way.
Move off Agriculture jobs.
The other positive sign is the decrease in agriculture-related employment. The pandemic had an impact on agriculture because it saw a large number of workers temporarily shift to other sectors. Nevertheless, according to the 202122 PLFS data, this tendency has been reversed, and now the industrial and service sector is absorbing an increased number of workers once again. Such change gives an indication of structural adjustment of the employment mix in India and diversifying the job opportunities.
Urban Labour Market reinforces slowly.
The annual report, though, gave a positive picture, the quarterly PLFS bulletins which primarily discussed urban labour markets already had an inkling of consistent recovery. The revival of jobs in urban areas has been fuelled by the increase in construction, manufacturing, and retailing. The data is that cities are now recovering their economic activity as they were before the devastating disruptions of 2020.
Continued Problems and Lopsided Recovery.
Although these are positive figures, analysts warn that the recovery is not even distributed. Rural communities and the informal laborers are still struggling to secure stable and well-paying jobs. Even the details of the PLFS report also show that there are still gaps in female labour participation and wage differences. In order to maintain these gains, the development of skills and the encouragement of inclusive growth is to be strengthened.
India has a Bright Future in the Labour Market.
All in all, the PLFS report shows a bright future of the labour economy in India. The decreasing unemployment rate, job regeneration in the cities, and the reduction in the agricultural dependency all create the image of strong resilience and adjustment. India seems to have all the reasons to carry on with this trend with further policy encouragement and financial stability and create a more balanced and sustainable job market in the coming years.
