Over 45 crore Indians are not even looking for jobs: CMIE data

India has witnessed a rapid increase in the number of people who are not even looking for a job, as most of them are frustrated at not being able to find the right kind of job, according to data from a private research organisation.

As per new data from the Centre for Monitoring Indian Economy Pvt (CMIE) in Mumbai, more than 45 crore Indians don’t want a job.

Also read: Rigid work policies forcing 7 out of 10 women to quit jobs in 2022: Survey

More than half of the 90 crore Indians of legal working age – roughly the population of the US and Russia combined – don’t want a job, CMIE data says.

Between 2017 and 2022, the overall labour participation rate dropped from 46% to 40%. About 2.1 crore women quit their jobs, leaving only 9% of the eligible population employed or looking for positions.

The increase in a number of women leaving the workforce was attributed to the jobs not being “kind” to them.

“Women do not join the labour force in as many numbers because jobs are often not kind to them. For example, men are willing to change trains to reach their job. Women are less likely to be willing to do that. This is happening on a very large scale,” said Mahesh Vyas of CMIE, according to the report.

“The large share of discouraged workers suggests that India is unlikely to reap the dividend that its young population has to offer. India will likely remain in a middle-income trap, with the K-shaped growth path further fuelling inequality,” Kunal Kundu, an economist with Societe Generale GSC Pvt in Bengaluru, was quoted as saying in a Bloomberg report.

To keep pace with a youth bulge, India needs to create at least 9 crore new non-farm jobs by 2030, according to a 2020 report by McKinsey Global Institute. That would require an annual GDP growth of 8% to 8.5%, the report said.

Unemployment drops

As per CMIE data, India’s unemployment rate decreased to 7.60 in March compared to 8.10 in February.

Amid this new data on the job market, the Employment Provident Fund Organisation (EPFO), last week, said that it had added 14.2 lakh subscribers in February. The month-on-month comparison of payroll data reflected a slight increase of 31,826 net subscriber addition in February compared to the previous month of January.

The year-on-year comparison showed an increase of 1,74,314 additions during February as compared to the net subscriber addition in the corresponding month of 2021. There is a consistent increase in the net subscriber addition since October 2021 showcasing trust in the services rendered by the organisation, the Ministry of Labour & Employment said.

Age-wise payroll data

Age-wise comparison of payroll data indicated that the age group of 22-25 years has been on the forefront by registering the highest number of net enrolments of 3.70 lakh additions during February followed by the age group of 29-35 years with an addition of 2.98 lakh net subscribers during the month. The age group of 18-25 years constitutes around 45% of total net enrollments during the month. This age group indicates that many first-time job seekers are joining the organised sector workforce in large numbers, the ministry said.

Gender-wise analysis indicated that net female payroll addition during the month is approximately 3.10 lakh during the month. The share of female enrollment was 21.95% of the total net subscriber addition during the month of February with an increase of 22,402 net enrolments over the previous month of January.