India’s labor force declined by 38 lakh in March, lowest in eight months

India’s labor force declined by 38 lakh in March, lowest in eight months

India’s labor force declined by 3.8 million to 428 million during March 2022, the lowest in eight months since July 2021, with both employment and unemployment declining last month, the Center for Monitoring Indian Economy said. The biggest sign of an economic crisis.
According to CMIE, employment declined by 1.4 million to 396 million in March 2022, while the number of unemployed declined by 2.4 million in March 2022. This resulted in a reduction in the employment rate from 36.7% in February 2022 to 36.5% in March. The unemployment rate fell to 7.6% in February from 8.1%.

“The decline in the absolute numbers of unemployment or the unemployment rate is not because more people have got employment. What the labor market data for March 2022 shows is the biggest indication of India’s economic crisis,” it said.

“Millions left the labor market and they also stopped looking for employment, possibly too frustrated by their failure to find jobs and under the belief that there were no jobs available,” it added.
As a result, the labor participation rate (LPR) also fell to 39.5% in March 2022, from 39.9% in February and even lower than the second wave of COVID-19 in April-June 2021, when it fell to 39.6% in June. It was done

“The fall in LPR reflects the inadequacy of growth in employment opportunities,” CMIE said in its weekly labor market analysis.

According to CMIE data, of the 1.4 million decline in employment in March 2022, non-farm jobs declined by 16.7 million, but this was offset by a 15.3 million increase in employment in agriculture.

“Such a huge increase in employment in agriculture is probably the seasonal demand for workers preparing for the rabi crop. But, March is too early for Rabi crop,” it said, adding that a significant part of growth in employment in agriculture in March was disguised unemployment.

Non-farm jobs fell in March, with industrial jobs shed 7.6 million, manufacturing by 4.1 million, construction by 2.9 million and mines shed 1.1 million.

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