Unemployment

Unemployment


The Report on Fifth Annual Employment-Unemployment Survey (2015-16) Volume-1 is based on a survey (field work) that was executed from April, 2015 to December, 2015. A total sample of 1,56,563 households has been covered for the survey, with a break up of 88,783 households from rural areas and 67,780 households from urban areas.

For the survey, altogether 7,81,793 persons were inquired, out of which 4,48,254 respondents belonged to rural households and the rest 3,33,539 respondents belonged to urban households.

A moving reference period of last twelve completed months from the date of survey is used to derive various estimates of labour force and its derivatives for preparing the Report on Fifth Annual Employment-Unemployment Survey (2015-16) Volume-1.

As per the Report on Fifth Annual Employment-Unemployment Survey (2015-16) Volume-1 (released in September 2016), which has been prepared by the Labour Bureau (Chandigarh), please click here to access:

• The unemployment rate was estimated to be 5.0 percent at the national level as per the Usual Principal Status (UPS) approach. In rural areas, unemployment rate stood at 5.1 percent whereas in urban areas, the same was 4.9 percent (as per the UPS approach).

• At the national level, the female unemployment rate was estimated to be 8.7 percent, whereas for males it was 4.0 percent (as per the UPS approach).

• The Labour Force Participation Rate (LFPR) was estimated to be 50.3 percent at the national level as per the Usual Principal Status (UPS) approach.

• In rural areas, the LFPR was estimated to be 53 percent whereas in the urban areas the LFPR was estimated to be 43.5 percent as per the UPS approach.

• In India, female LFPR was estimated to be 23.7 percent as compared to 75 percent for males and 48 percent for transgenders.

• The Worker Population Ratio (WPR) was estimated to be 47.8 percent at the national level, based on the UPS approach.

• In rural areas, the WPR was estimated to be 50.4 percent as compared to 41.4 percent in the urban areas (based on the UPS approach).

• The female WPR was estimated to be 21.7 percent at the national level as compared to the male WPR of 72.1 percent and 45.9 per cent for transgenders (based on the UPS approach).

• Majority of the employed persons were found to be self-employed based on both the Usual Principal Status (UPS) and Usual Principal & Subsidiary Status (UPSS) approach.

• In India, 46.6 percent of the workers were found to be self-employed, followed by 32.8 percent as casual labour (based on UPS approach). Nearly 17 percent of the employed persons were wage/ salary earners and the rest 3.7 percent were contract workers.

• Based on the UPS approach, at the national level, 46.1 percent of the persons were found to be employed in the Agriculture, Forestry and Fishing sector (also called primary sector), followed by 21.8 percent in the secondary sector and 32 percent in the tertiary sector.

• Almost 60.6 percent of the persons aged 15 years and above who were available for work for all the 12 months during the reference period were able to get work throughout the year, at the national level. In rural areas, 52.7 percent of the persons aged 15 years and above who were available for work for all the 12 months during the reference period were able to get work throughout the year at the national level, whereas the corresponding figure for urban areas stood at 82.1 percent.

• In India, 67.5 percent of self-employed workers had average monthly earnings of upto Rs. 7500. Only 0.1 percent of the self-employed were estimated to have earnings above Rs. 1 lakh.

• Similarly, 57.2 percent of regular wage/ salaried workers had monthly average earnings of upto Rs. 10,000. At the national level, 38.5 percent of the contract workers and 59.3 percent of the casual workers had monthly earnings of upto Rs. 5000.

• In India, majority of unemployed persons (33.5 percent) used more than two methods to seek work i.e. through friends & relatives (24.1 percent), followed by applications made in response to advertisement (23.7 percent), and through employment exchanges (4.3 percent).

• At the country level, 58.3 percent of unemployed graduates and 62.4 percent of unemployed post graduates cited non-availability of jobs matching with education/ skill and experience as the main reason for unemployment, followed by non-availability of adequate remuneration cited by 22.8 percent of graduates, and 21.5 percent of post graduates.

• In India, 64.9 percent of regular wage/ salaried workers, 67.8 percent of contract workers and 95.3 percent of the casual workers do not have a written job contract. Nearly, 27 percent of the regular wage/salaried workers and 11.5 percent of the contract workers had written job contract of more than three years.

• At the national level, only 20.6 percent of workers except self-employed received paid leave and just 21.6 percent availed social security benefits. A majority 71.2 percent of workers were not eligible for social security benefits.

• Almost 24 percent households benefitted from employment generating schemes like Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Prime Minister's Employment Generation Programme (PMEGP), Swarnajayanti Gram Swarojgar Yojana (SGSY) and Swarna Jayanti Shahari Rozgar Yojana (SJSRY) etc.

• Only three North Eastern states, namely Tripura, Manipur and Mizoram have more than 70 percent of the households that benefited from MGNREGA.

• At the national level, about 77 percent of the households were reported to be having no regular wage/ salaried person.

• At the national level, a little more than 67 percent of the surveyed households had average monthly earnings not exceeding Rs. 10,000 only. In rural areas, such households constituted about 77 percent, whereas the corresponding proportion was about 45 percent among urban households.

• The state of Madhya Pradesh recorded the highest proportion (35.8 percent) of households with average monthly earnings not exceeding Rs. 5,000, followed by West Bengal (34.5 percent), Uttar Pradesh (30.1 percent) and Odisha (29.8 percent).

• At the national level, 94.4 percent of the households surveyed had saving bank accounts.


Note:


The Labour Force Participation Rate (LFPR) is defined as the number of persons in the labour force per 1000 persons (of the population).

The Worker Population Ratio (WPR) is defined as the number of persons employed per 1000 persons (of the population aged 15 years & above).

The Proportion Unemployed (PU) is defined as the number of persons unemployed per 1000 persons (of the population aged 15 years & above).

The Unemployment Rate (UR) is defined as the number of persons unemployed per 1000 persons in the labour force (employed & unemployed).

Usual Principal Status (UPS) Approach: The major time criterion based on the 365 days is used to determine the activity pursued by a person under the UPS approach. Accordingly, the major time spent by a person (183 days or more) is used to determine whether the person is in the labour force or out of labour force. A person found unemployed under this approach reflects the chronic unemployment. In the present survey, the UPS approach estimates are derived for a moving reference period of last twelve months. For example, if the household is surveyed in January, 2014, the reference period for collection of information is January, 2013 to December, 2013.

A person is classified as belonging to labour force as per the UPS approach, if s/he had been either working or looking for work during longer part of the 365 days preceding the survey. The UPS measure excludes from the labour force all those who are employed and/or unemployed for a total of less than six months. Thus persons, who work intermittently, either because of the pattern of work in the household farm or enterprise or due to economic compulsions and other reasons, would not be included in the labour force unless their days at work and unemployment totalled over half the reference year.

Usual Principal and Subsidiary Status (UPSS) Approach: The other important approach to measure the labour force parameters is the UPSS approach. This approach is a hybrid one which takes into consideration both the major time criterion and shorter time period (30 days or more in any economic activity). Thus a person who has worked even for 30 days or more in any economic activity during the reference period of last twelve months is considered as employed under this approach. In this approach, the reference period is same as taken in the usual principal status approach (UPS). This approach is also called the usual status approach.
 


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