Unemployment rate up at 4.9% in 2013-14

Highlights of the key findings of Employment and Unemployment situation in India, released by Labour Bureau, Government of India in its Report on Fourth Annual Employment & Unemployment Survey 2013-14

According to the latest survey report by the Labour Bureau, unemployment rate in India rose to 4.9% in 2013-14 from 4.7% in 2012-13, mainly on account of increase in joblessness in rural areas despite the government’s employment scheme MGNREGA. However, the unemployment rate dropped in urban areas from 5.7% in FY13 to 5.5% in FY14.

The survey has been conducted in all the States/UTs by covering all the districts. A total sample of 1,36,395 households which includes 83,385 households in the rural sector and 53,010 households in the urban sector.

The employment-unemployment situation- The unemployment rate is estimated to be 4.9% at All India level under the Usual Principal Status (UPS) approach. The unemployment rate for different categories based on UPS approach is-

			(in percent)
Sector	Male	Female	Person
Rural	4.2	6.4	4.7
Urban	3.9	12.4	5.5
Rural + Urban	4.1	7.7	4.9

Source: PHD Research Bureau, Compiled from Labour Bureau, Ministry of Labour & Employment, GOI

At all India level, 49.5% persons are estimated to be self employed under the Usual Principal Status Approach followed by 30.9% as casual labour. Only 16.5% were wage/salary earners and the rest 3.0% covered contract workers. The survey results show that majority of the persons are employed in the primary sector. Under Agriculture, Forestry and Fishing sector, 46.9% persons are estimated to be employed at All India level based on Usual Principal Status Approach.

Labour force and worker-population ratio- Labour Force Participation Rate (LFPR) is estimated to be 52.5% under the UPS approach at All India level. LFPR for different categories based on UPS approach is as follows:

			(in percent)
Sector	Male	Female	Person
Rural	74.7	29.1	54.7
Urban	73.8	18.5	47.2
Rural + Urban	74.4	25.8	52.5

Source: PHD Research Bureau, Compiled from Labour Bureau, Ministry of Labour & Employment, GOI

The Worker Population Ratio (WPR) is estimated to be 49.9% at All India level under the UPS approach.

An attempt was made in this round of the Annual Employment Unemployment Survey to work out some estimates of underemployment, considering only the duration of work available to participants in the Labour Force. Only 60.5% of 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 All India level. In rural and urban sector, it was 53.2%  and 78.5% respectively.

Youth Employment - Unemployment Scenario 2013-14- Unemployment Rate for different age groups and by two different approaches is as follows:

			(in percent)
Approach	15-17 Years	18-29 Years	30 Years & above
UPS	17.5	12.9	1.4
UPSS	10.2	9.4	0.8

Source: PHD Research Bureau, Compiled from Labour Bureau, Ministry of Labour & Employment, GOI

The Unemployment Rate for the persons aged 18-29 years and holding a degree in graduation and above is found to be maximum with 28% based on Usual Principal Status Approach at All India level. The Unemployment Rate for the persons aged 18-29 years and having educational qualification "below primary" and "primary" is about 4% based on Usual Principal Status Approach at All India level.

Employment in Informal Sector & Conditions of Informal Employment 2013-14- Information on characteristics of enterprises and conditions of informal employment was collected for usual principal status workers engaged in AGEGC (agriculture sector excluding growing of crops, plant propagation, combined production of crops and animals without a specialized production of crops or animals) and non-agricultural sector.

Proprietary and partnership enterprises together shares more than 50% of the employed persons. In other words, among the workers in AGEGC and non-agricultural sectors, about 52% are found to be engaged in informal sector enterprises. Around 39% workers are employed in proprietary enterprise type which implies that a high proportion of informal workers are engaged in proprietary enterprises as compared to partnership enterprises in both rural and urban sectors.

About 93% of the casual workers do not have any written job contract; which implies more informality among them followed by contract workers (68.4%). Among the wage/salaried employees where more formal jobs available, about 66% employees have reported to be working without written job contract.

Employment-Unemployment Scenario among different Social Groups 2013-2014- The households have been classified based into four social groups, viz., Scheduled Castes (SC), Scheduled Tribes (ST), Other Backward Classes (OBC) and Others category. According to the survey, 41.1% households belong to the OBC category followed by 30.4% under Others category, 18.8% under SC category while 9.6%  belong to the ST category at All India level. All the households under study are put in five categories on the basis of number of employed members in the household.

					(in percent)
Particulars	None	1 Person	2 Persons	3 Persons	4 & above persons
Rural	4.1	42.6	33.4	12.7	7.2
Urban	5.7	54.8	27.1	9.1	3.3
Rural + Urban	4.6	46.3	31.5	11.6	6.1

Source: PHD Research Bureau, Compiled from Labour Bureau, Ministry of Labour & Employment, GOI

The Unemployment Rate (UR) for different social groups based on Usual Principal Status Approach and Universal Principal & Subsidiary Status approach is as follows:

				(In percent)
Approach	SC	ST	OBC	Others
UPS	4.6	4.5	4.8	5.3
UPSS	3.1	2.1	3.4	4.2

Source: PHD Research Bureau, Compiled from Labour Bureau, Ministry of Labour & Employment, GOI

Education, Skill Development & Labour Force 2013-14- Population aged 15 years and above who received/are receiving vocational training is estimated at 6.8% at All India level. In rural and urban areas, it is 6.2% and 8.2% respectively. About 76% of the persons aged 15 years and above have reported to be employed at All India level who have received/receiving vocational training during the reference period.

In case of 'graduates' and 'post graduates' the unemployment rate is about 14% and 12% respectively based on Usual Principal Status approach. Whereas in case of 'not literate' and 'below primary' persons, the unemployment rate is less than 2% each based on survey results.

The percentages of formally trained persons are estimated at 2.2% and 4.4% in rural and urban sectors respectively. The percentages of informally trained persons are estimated at 4% and 3.8% in rural and urban sectors respectively. In case of informal training, the percentage of vocationally trained unemployed persons is found marginal at 3.1% whereas in case of formal vocational training acquired, the percentage of unemployed persons is estimated at 14.5%.