A new report has said that India’s unemployment is now at a record low and that the country’s labour market is undergoing a structural change. The record has also said that the economists at the country’s largest lender SBI also pitched for a reinterpretation of old-fashioned rhetoric while looking at a subject like employment.
“India’s unemployment rate is at a record low, India’s labour market is undergoing a deep structural transformation with self-entrepreneurship across all echelons and higher educational attainment emerging as key enablers,” the report said.
The report said that the rise in self-employed people within the country is now 57.3% in FY23 against the 52.2% in FY18 with the main traction coming from the rising share of household helpers which has been wrongfully interpreted in the past by the labour economists and others as a sign of a shrinking employment opportunities.
The government’s emphasis on entrepreneurship through the Prime Minister’s Mudra Yojana (PMMY) and post-pandemic schemes like PM-SVANidhi for those at the bottom of the pyramid is “imparting a structural transformation in labour markets in India through formalisation of credit for such family enterprises”, the report said.
The report has said that earnings have increased across all categories and added that with primary subsistence needs like food, shelter, medical needs being taken care of by the government through free ration for 80 crore people such as PMAY and Ayushman Bharat apart from additional state schemes. Such people receiving aid through the government are making a clear trade-off between earnings and working in family enterprises.
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