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Image for representation purposes only.
Image for representation purposes only.

Fewer rural youth sought work in FY19

Among rural youth, LFPR for both male and female workers fell in FY19, while in urban India LFPR for females fell, while it increased for males.

More rural youth withdrew from the labour market in FY19 compared with the preceding year because of intensifying rural distress well before the coronavirus outbreak.

Labour force participation rate (LFPR), people working or looking for jobs, for rural youth aged 15-29 years fell from 38.1% a year earlier to 37.8% in FY19, according to the recent period labour force survey released by the statistics department. However, LFPR for urban youth rose marginally from 38.5% in FY18 to 38.7% in FY19.

Among rural youth, LFPR for both male and female workers fell in FY19, while in urban India LFPR for females fell, while it increased for males.

LFPR is considered a better metric to analyse labour market trends for a developing country such as India, instead of the unemployment rate, which is the percentage of the labour force currently unable to find a job.

The Indian economy slowed from a 7% growth in gross domestic product in FY18 to 6.1% in FY19. It further decelerated to 4.2% in FY20 and is projected to face its worst recession, contracting by at least by 5% in FY21 because of the coronavirus outbreak and the ensuing lockdown since 25 March. PLFS was launched to measure employment every three months in urban areas and once a year in both rural and urban areas. The quarterly survey only captures data classed as current weekly status (CWS), while the annual one measures both usual status and CWS.

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