Unemployment rate drops to 5.8% in 2018-19: National Statistical Office

Unemployment rate drops

The unemployment rate in India dropped to 5.8 percent in 2018-19 from previously reported data, according to the National Statistical Office.

The unemployment rate in 2017-18 grew to 6.1 percent as compared to 2.2 percent in 2011-12, according to the results of the periodic labour force survey released by the National Statistical Office. Beginning in 2017-18, the survey has been reported the figures on an annual basis between the months of July and June.

Unemployment rate dropsThe labour force participation rate (LFPR) also known as the proportion of population working or seeking jobs , grew slightly up to 50.2 percent in 2018-19 from 49.8 percent in 2017-18. This is for the age group of 15 years and above.

“The year 2017-18 was difficult because of the effect of demonetisation and the Goods and Services Tax (GST) which had also reflected in the high unemployment rate. So ideally, 2018-19 should have shown improvement but it has not changed significantly,” Centre for Monitoring Indian Economy Managing Director (MD) and Chief Executive Officer (CEO) Mahesh Vyas said.

During 2017-18 and 2018-19, the unemployment rate dropped from 5.7 pe cent to 5.2 percent for females and from 6.2 percent to 6 percent for males. In villages, the unemployment rate slipped to 5 percent from 5.3 percent and in cities it was reported at 7.7 percent from 7.8 percent the previous year.

In the age group of 15-29 years, the unemployment rate went down from a high of 17.8 percent to 17.3 percent, the official data revealed.

The participation of females in the labour force improved from 23.3 percent in 2017-18 to 24.5 percent in 2018-19. For males, it went down from 75.8 percent to 75.5 percent. However, while the LFPR was in better position in rural areas, it remained flat in cities.

The PLFS report was released on Thursday after an official committee gave approved it the previous day. The government had withheld the release of the PLFS report of 2017-18 last year, even after the approval of the top statistical body National Statistical Commission, prompting its then chairman and a member to resign from their posts.

However, after the general elections concluded in May 2019, the government released the report which showed the unemployment rate touching a 45-year high. The government, however, had said that the figures of 2017-18 were not comparable with older numbers — a claim which was contested by data experts.

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