Unemployment rate at four-decade high of 6.1% in 2017-18: NSSO survey

The survey, withheld by the govt, shows a big surge in joblessness among youth

The country's unemployment rate stood at a 45-year-high of 6.1 per cent in 2017-18, according to the National Sample Survey Office's (NSSO's) periodic labour force survey (PLFS). The report is at the centre of a controversy after two National Statistical Commission (NSC) members, including acting chairman, resigned on Monday, alleging that the government had withheld its release despite the NSC's approval.

According to the report, which has not been made public yet, the unemployment rate was at its highest level since 1972-73 – a period from when the jobs data is comparable, documents reviewed by Business Standard showed. In 2011-12, the unemployment rate stood at 2.2 per cent, according to the NSSO survey. 

The joblessness rate among youth was at a significantly higher level compared to the previous years and “much higher compared to that in the overall population,” showed the report.

For instance, the rate of joblessness among rural males in the age group of 15-29 years jumped more than three times to 17.4 per cent in 2017-18 compared to 5 per cent in 2011-12. Similarly, the unemployment rate for female youth in rural areas stood at 13.6 per cent in 2017-18 compared to 4.8 per cent in 2011-12.

The unemployment rate for urban youth was more than their rural counterparts (18.7 per cent for males and 27.2 per cent for females).

PLFS is the first annual household survey of the NSSO and the field work for the collection of data was done between July 2017 and June 2018. 

The findings of the report hold significance as this is the first survey on employment conducted by a government agency after Prime Minister Narendra Modi announced demonetisation of high-valued currency notes in November 2016.

Significantly, the labour force participation rate (LFPR) – the proportion of population working or seeking jobs – declined from 39.5 per cent in 2011-12 to 36.9 per cent in 2017-18. The LFPR has been declining since 2004-05. The dip in LFPR was at a higher pace in 2017-18 compared to 2011-12, but at a lower speed than what was witnessed in 2009-10. However, this was for all age groups, starting from five years.

Economists pointed out that the LFPR for the country should be measured for the working age group, which starts from 15 years. In this age category (15 years and above), the LFPR stood at 49.8 per cent in 2017-18, falling sharply from 55.9 per cent in 2011-12.
 

The unemployment rate among the educated also went up in 2017-18 compared to 2004-05. “For educated rural females, the unemployment rate ranged from 9.7 per cent to 15.2 per cent during 2004-05 to 2011-12 which rose to 17.3 per cent in 2017-18,” the NSSO’s survey report noted. For rural educated males, the unemployment rate rose to 10.5 per cent in 2011-12 which ranged from 3.5-4.4 per cent during 2004-05 to 2011-12.