Employment and labor force participation rates have fallen in four of the five polling states over the past five years. Except for Manipur, the four states – Uttar Pradesh, Uttarakhand, Goa and Punjab – are reeling from unemployment, data from the Indian Economy Monitoring Center and the Periodic Labor Force Survey showed. .
Uttarakhand has an employment rate of 30.43% (as of December 2021), which is well below the national average of 37.42% and is the lowest in the country. It is followed by Goa (31.99%), Uttar Pradesh (32.79%) and Punjab (36.86%).
Here’s an overview of the five states’ employment statistics on four major indicators: working-age population, employment rate, labor force participation rate, and unemployment rate.
About 38% or 5.71 crore of the state’s working-age population (14.82 crore) as of May–August 2016 were employed. This figure was reduced in one year to 37.17% in May 2017-August 2017, then to 36.33% in 2018 and 35.34% in 2019, 33.33% in 2020 and 32.79% at the end of 2021.
The total number of employed people has remained above 5.6 crores till the first quarter of 2020. Due to the Covid-19 pandemic, many people in the state have lost their jobs and the number of employed people is fell to 5.49 crores in May 2020-August 2020.
While the employment rate has fallen in the state, the unemployment rate has also fallen from 16.82% in mid-2016 to 4.83% at the end of 2021. But that doesn’t paint a clear picture. of the unemployment scenario, explained the Indian Center for Monitoring. Mahesh Vyas, Managing Director and CEO of Economy.
“While the unemployment rate only takes into account labor force participation [people who have a job and those who are actively looking for one] which has been declining rapidly over the past five years, employment is for the entire working-age population (over 15),” Vyas said.
Second, a majority of the population is not officially looking for a job, leading to an undercount of the unemployed in the country, he added.
The state’s labor force participation rate has also increased from 46.32% in mid-2016 to 34.45% at the end of 2021. Although UP’s working-age population has increased by more than 2.2 crore – from 14.82 in 2016 to 17 crore in 2021, the total number of employed people has decreased by more than 11 lakh.
Over the past five years, the number of employed people in the state has decreased by more than 5 lakh. As of August 2016, over 1 crore people were employed and the working age population was over 2.31 crore. But, in December 2021, more than five years later, the working-age population increased by 11.7% but the employment rate fell from 43.4% to 36.86%.
This caused the unemployment rate to increase by 1.18 percentage points over the period. Moreover, with an employment rate of 36.86%, Punjab is the closest state to the national average of 37.42%.
Over the past five years, Uttarakhand’s working age population has grown by 11.7%, but during this period, the number of employed people has dropped by 8.9 lakh. Although the state has the lowest unemployment rate of 4.08% compared to the five states linked to the poll, it also has the highest employment (30.43%) and labor force participation (31 .73%) the lowest.
While Uttarakhand’s labor force grew steadily, its employment rate declined at the onset of the Covid-19 pandemic and has stagnated – around 30% (well below the national average) ever since.
Goa’s unemployment rate has remained the highest at over 13% among all states linked to the poll for the past five years. The seaside state’s employment rate fell from 49% to 32% over the period.
In August 2016, when the coastal state’s working age population was 12.24 lakh, about half or more than 6 lakh people were employed. However, by December 2021, its labor force had increased to 13.1 lakh, but those in employment had dropped to 32% or 4.2 lakh.
Since the Indian Economy Monitoring Center does not provide data for Manipur, fact checker refers to labor force participation rate and unemployment rate figures from the periodic labor force survey between 2017 and 2020.
The state saw the labor force participation rate increase by 2 percentage points and the unemployment rate drop by the same amount – from 11.5% in 2017-18 to 9.5% in 2019-20.
This article first appeared on FactChecker.in, a publication of the data-driven, public interest journalism nonprofit IndiaSpend.