Fall in unemployment rate misleading

The unemployment rate has been falling since October 2016

Demonetisation did not hit the unemployment rate. It hit something much deeper. It hit labour participation itself.

Labour participation rate is the proportion of the population that is employed or is seriously willing to work. The labour force, therefore, consists of people who are employed and also those who are not employed but are actively looking for jobs.

People who are not employed and are not actively looking for jobs are not considered part of the labour force. A retired person who has opted to not seek any further employment, a young student who is not seeking employment, or most