BANKING AND ECONOMY
As being unable to find the right kind of job millions of Indians are exiting the labor force entirely. This includes particularly women who are moving out of the labor force. This will end up in a big threat to the economy of the country.
The new data was released by a Mumbai-based private research firm - the Centre for Monitoring Indian Economy.
The overall Labor Participation Rate (LPR) dropped from 46% to 40% between the period 2017 and 2022. It shows a lack of growth in employment opportunities.
During the period between 2017 and 2022, about 21 million women permanently left the workforce. Among the total women workforce, only 9% are either employed or looking for jobs currently.
As per the new data of the Centre for Monitoring Indian Economy Workforce Report, more than half of the 900 million Indians of legal working age don’t want a job.
As per McKinsey Global Institute’s report, in this situation, the country needs to generate at least 90 million new non-farm jobs by 2030. To achieve this, the annual GDP growth rate of India must be between 8% and 8.5%. If India fails to put young people to work and achieve 8.5% GDP growth, it could get derailed from achieving its developed-country status.
Reasons for the drop in workforce participation - Students / Homemakers, live on rental income or pension, safety concerns of women related to work, time-consuming responsibilities of women at home.