India hits historic low in unemployment figures: SBI report

India's employment landscape is witnessing a significant transformation, as indicated by a recent report from the State Bank of India economists. The report highlighted a historic low in the country's unemployment rate, signalling a noteworthy shift in the labour market dynamics.

SBI economists emphasized the need to reconsider conventional viewpoints when evaluating employment scenarios. They underscored that India's current labour market is undergoing a profound structural change, with a surge in self-entrepreneurship cutting across various social strata. The report pointed out that increased educational attainment has played a pivotal role in enabling this transformation.

Contrary to misconceptions held by some labour economists, the rise in self-employed individuals, which has surged to 57.3% in FY23 from 52.2% in FY18, particularly attributed to the growing number of household helpers, should not be misinterpreted as a reduction in employment opportunities, the report highlighted.

The sixth annual PLFS report disclosed a drop in unemployment, plummeting from 6.1% in FY18 to 3.2% in FY 2023. Additionally, it highlighted a surge in female labour force engagement, with Odisha leading, trailed by Himachal Pradesh and Uttarakhand.

The female labour force participation stands at 32% at present as against 28% in 2019-2020.

This shift is complemented by an upsurge in higher educational attainment and a growing inclination towards entrepreneurship across all walks of society. While there has been a general decline, the rate remains highest among those with secondary and higher educational qualifications. This points towards a need for higher value-added jobs that can absorb India's educated youth.

In 2017, PLFS surveys were introduced to address limitations in the former Employment and Unemployment Survey (EUS-NSSO), such as representation, frequency, and punctuality.

Since then, these surveys have been conducted annually, yielding comprehensive reports. They furnish unemployment data nationwide and at state levels, encompassing rural and urban areas, offering detailed breakdowns by gender, age, and more.

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