How COVID-19 reduced labour participation rate
Jul 30, 05:07

With lockdowns lifted and mobility eased, unemployment rate in India dropped to 9.2% in June 2021 after hitting double-digits in May, indicating a recovery in job market. But behind the good unemployment numbers lies a serious lack of decent work opportunities, keeping labourers away. According to data from Centre for Monitoring Indian Economy, labour force participation rate (LFPR) is lower than pre-covid-19 levels. LFPR is percentage of population aged between 16 and 64 years actively seeking work, and those employed. LFPR that averaged 42.7% in 2019-20 fell to 35.6% during national lockdown last year. It rose to 41% in August when economic activity resumed but again fell to 39.6% after second wave.

Drop in Labour Force Participation Rate due to Covid19