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unemployment rate saw a decrease

UPSC CURRENT AFFAIRS | UNEMPLOYMENT RATE SAW A DECREASE | 16TH JUNE | THE HINDU

/ June, 2022, UPSC Daily Current Affairs

SYLLABUS SECTION: GS III (ECONOMY)

WHY IN THE NEWS?

According to the recent Periodic Labour Force Survey (PLFS) for 2020-21, the unemployment rate saw a decrease of 0.6% and fell to 4.2% in 2020-21, compared with 4.8% in 2019-20.

KEY HIGHLIGHTS:

  • The rate of joblessness has been fallen to 4.2% in 2020-21, compare with 4.8% earlier
  • The rate of unemployment in rural areas was record at 3% and urban areas
  • They record an unemployment rate saw a decrease rate of 6.7%.
  • The Labour Force Participation Rate (LFPR), is the percentage of persons in the labour force
  • That is, working or seeking work or available for work).
  • It was 41.6% during 2020-21 (higher than 40.1% in 2019-20).
  • All-India female labour force participation rate (LFPR) has increase from 2.3% in 2021 to 25.1% as compare to 22.8% a year ago.
  • Worker Population Ratio (the number of employee people per thousand people) was 39.8% (an increase from 38.2% the previous year).
  • According to the survey, the migration rate is 28.9%. The migration rate among women was 48% and 47.8% in rural and urban areas, respectively.
  • Migrants are define as household members whose last usual place of residence,
  • At any time in the past, was different from the present place of enumeration.
  • Employment-related migration: 4.4% of migration happen due to employment, which is a drastic reduction from 10% in 2011.
  • During the pandemic, reverse migration led to a higher rate of unemployment agglomeration in rural areas, which caused rural distress. However, the annual report on the unemployment rate shows a contradiction.

 

Government initiatives for employment

  • A correlation between PLFS, as well as payroll data from the Employees’ Provident Fund Organisation (EPFO), shows a rise in employment rates and employment opportunities.
  • Several Government schemes including Make in India, Atal Mission for Rejuvenation and Urban Transformation, National Smart City Mission, PM Awas Yojana, PM Gati Shakti and Swachh Bharat Abhiyan are orienting towards generating employment opportunities.
  • Prime Minister Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) is providing working capital loans to Street Vendors, vending in urban areas, to resume their businesses. Under this scheme, credit worth Rs. 3,075.85 crore to 29.85 lakh street vendors as of 7 March 2022.
  • Pradhan Mantri Mudra Yojana (PMMY) provides collateral-free loans up to Rs. 10 lakh are extend to micro/small business enterprises and to individuals to enable them to set up or expand their business activities, etc. Up to 11 March 2022, 34.08 crore loans were sanction under the scheme.
  • Similarly, production-link incentive (PLI) schemes, launch in budget 2021-22 with an outlay of Rs. 1.97 lakh crore for a period of 5 years starting from 2021- 22, is also expected to collectively generate employment in the medium to long term.

Read more: UPSC CURRENT AFFAIRS

SOURCE: THE HINDU