Economic Survey Highlights Growth in Female Workforce Participation

New Delhi- According to the Economic Survey 2023-24, the unemployment rate in India continues to drop. The survey data reveals that the all-India annual unemployment rate for people over 15 years old has been declining since the start of the COVID-19 pandemic.

This trend is particularly notable among young people. The youth unemployment rate (ages 15-29) dropped from 17.8% in 2017-18 to 10% in 2022-23. The majority of new subscribers to the EPFO payroll fall within the 18-28 age group. The survey also shows that the female workforce participation rate has increased significantly in the last six years. This is one of the major reasons for the decline in the youth unemployment rate.

The growth in employment opportunities is also linked to the expansion of infrastructure and development projects. The expansion of these projects has created new jobs in rural areas, contributing to the growth in the female labour force participation rate. Improved access to basic amenities such as piped drinking water, clean cooking fuel, and improved sanitation facilities have also played a major role in increasing female participation in the labour market.

The survey also indicates that the organized manufacturing sector has recovered to pre-pandemic levels. This has been driven by higher wage growth in rural areas. The growth rate of wages in the manufacturing sector has been 6.9% annually since FY 2015, compared to 6.1% in urban areas.

However, the survey reveals that employment growth has been low in states with a large number of young people. In such states, as Chhattisgarh, Haryana, and Uttar Pradesh, the employment growth rate between FY 2018 and FY 2022 was the highest.

The growth in the number of employees in the EPFO payroll has been consistent since FY 2019. The net payroll additions more than doubled from 6.1 million in FY 2019 to 13.15 million in FY 2024. This growth was aided by the Aatmanirbhar Bharat Rojgar Yojana (ABRY) scheme. The EPFO membership grew by an impressive 8.4% CAGR between FY 2015 and FY 2024.

The survey also highlights the importance of maintaining the current momentum in order to create more employment opportunities. This can be achieved by investing in infrastructure development and building a digital India. The government also needs to play a role in promoting employment generation and addressing the challenges faced by the unemployed.