A recent report reveals that India's unemployment rate has reached a historic low, signalling a profound structural shift in the country's labour market.
The economists at the State Bank of India (SBI), in their latest findings, advocate for a fresh perspective on the employment scenario, emphasising the need to move beyond conventional narratives.
The report highlights the record-low unemployment rate in India and underscores the ongoing transformative changes in the labour market.
The rise of self-entrepreneurship at various levels, coupled with increased educational attainment, is identified as a key factor contributing to this shift.
Expressing concern about the misinterpretation of data, the report addresses the surge in the self-employed population, which has grown from 52.2 per cent in FY18 to 57.3 per cent in FY23.
Contrary to misconceptions, the increase, particularly driven by a higher share of household helpers, does not indicate a reduction in employment opportunities, according to the economists.
The report attributes the rise in self-entrepreneurship to government initiatives such as the Prime Minister's Mudra Yojana (PMMY) and post-Covid pandemic schemes like PM-SVANidhi, designed to benefit those at the grassroots level.
These programmes are seen as catalysts for a significant structural transformation in India's labour markets by formalising credit for family enterprises.
Additionally, the report notes that earnings have seen an upward trend across all categories.
The government's focus on entrepreneurship, combined with initiatives like free ration distribution for 80 crore people, Pradhan Mantri Awas Yojana, and Ayushman Bharat, has enabled individuals to make a conscious choice between earning opportunities and engaging in family enterprises.
Bhuvan Krishna is Staff Writer at Swarajya.
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