Published on: April 29, 2022

LABOR FORCE PARTICIPATION RATE

LABOR FORCE PARTICIPATION RATE

Akita NEWS

Recently, data from the Centre for Monitoring Indian Economy (CMIE) shows that India’s Labour Force Participation Rate (LFPR) has fallen to just 40% from an already low 47% in 2016

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WHAT IS LFPR

  • Percentage of the working-age (15 years or older) population that is asking for a job.
  • Represents the “demand” for jobs in an economy
  • Includes those who are employed and those who are unemployed

WHAT DID THE REPORT SAY

  • In India, the LFPR is not only lower than in the rest of the world but also falling.
  • In India, it has been sliding over the last 10 years and has shrunk from 47% in 2016 to just 40% as of December 2021.
  • The main reason for India’s LFPR being low is the abysmally low level of female LFPR.
  • As of December 2021, while the male LFPR was 67.4%, the female LFPR was as low as 9.4%
  • Even if one sources data from the World Bank, India’s female labor force participation rate is around 25% when the global average is 47%.
  • The reasons or low women LFPR is essentially about the working conditions — such as law and order, efficient public transportation, violence against women, societal norms etc. — being far from conducive for women to seek work.
  • Further, lot of women in India are exclusively involved within their own homes (caring for their family)