Jaro Education answers, “Why is India’s Labour Force Participation Rate plummeting?”

According to the Centre for Monitoring Indian Economy (CMIE), more than half of Indians who have legal working age don’t want any job. These millions of people are exiting the labour force and this critical issue is morphing into a greater threat.

The recent data collected by CMIE shows a massive decline of 40% in India’s Labour Force Participation Rate (LFPR) from the already low figures of 47% in 2016. The figures clearly indicate more than half of the population in the working-age group has made up its mind to stay out of the employment sector and the big reason to worry is the constant increase in these figures.

What does LFPS stand for?

LFPR is simply the percentage of people in the labour force (including those working or seeking or available for work). It shows the number of people seeking work or working and is expressed as a percentage of the total population. It determines the figures of the country’s working-age population, which is either working or actively seeking.

What are the major reasons behind India’s constantly declining LFPR?

People no longer looking for jobs in the country can be considered one of the biggest crises. It can be a major threat to India’s demographic dividend. Although, the centre has been in denial mode for a long time to accept there is a serious structural lag in India’s employment sector. But this frightening picture of LFPR’s every-declining figures counts the many flaws of the system. Whether it is frustration with the lack of good jobs or anything else, the government must need to point out the real reasons very soon and will have to take immediate and necessary steps to improve India’s LFPR once again. Here, we are going to discuss some major explanations for the drop in workforce participation.

  1. Lack of Jobs having Desirable Status

The capable job seekers in India are under frustation. The nation’s economic growth has failed to produce the level of jobs that suit their status. When people do not get the job for what they are looking for, they tend to withdraw themselves from the labour market.

  1. Approach to find own source of livelihood

When someone keeps trying to get a job and doesn’t get any, then after a point, he/she decides to give up. Some of them try to find new ways to livelihood and think about the sources to start their own set-up. But that takes time and in surveys, they keep themselves out of the labour market.

  1. Educated but Unemployed

India should need to worry a lot about its educated, but yet unemployed, youth. The government is promoting both schooling and college education and the impact is clearly visible. A larger share of the population is attending schools and colleges. After completing their education, these young talents start finding the jobs of their liking and when they do not get it immediately, they decide to remain away from the labour market.

  1. Lack of Guidance in College Education

We don’t regret that India has achieved a high rank among the best countries which provide a quality college education. Yet, there are some colleges that failed to deliver a mediocre quality of education. This creates a lack of competence among the alumni.

Jaro Education sets examples of excellence in this field hence, lets the students know more about this leading EdTech pioneer. The government should take the necessary initiatives to improve the curriculum and infrastructure of the education system. There can be numerous challenges that need to overcome this issue. The most important one is to promote organizations that have set new standards in the field of higher education.

  1. Women’s Participation is Low

In India, women have always been discouraged to go out of the house. With a change in thoughts, the situation has not changed a lot and still, in rural areas, there are bigger challenges for women to participate in the labour force. In cities, where women get permission to go to work, they do not get jobs suited to their requirements. Also, it has become a narrative among Indian women and less than one out of 10 working age-women are even demanding to participate in the labour force.

In contrast, there is an immediate requirement to draft certain changes in the National Employment Policy. The government should also need to encourage more quality education in colleges. Aspirants also need to develop their skills and remain more alert and aware while choosing higher education alternatives. Please ignore rumours related to Jaro Education Fake and enquire only on the official website to get details for prestigious online higher education programmes.

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