Lok Sabha Question No. 134 (UNSTARRED), answered on 2022-07-18
Subject: Historic Low Labour Force Participation Rate
Ministry: LABOUR AND EMPLOYMENT
Asked by: Gaurav Gogoi

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA

## UNSTARRED QUESTION NO.134

## TO BE ANSWERED ON 18 TH  JULY, 2022

## HISTORIC LOW LABOUR FORCE PARTICIPATION RATE

## 134.  SHRI GAURAV GOGOI :

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a) whether the Government is aware that Labour Force Participation Rate (LFPR) is 40.38 per cent;
- (b) if  so, whether the Government has studied possible reasons for the historic low LFPR; and
- (c) whether  the  Government  has  deliberated  policies  or  other  interventions  to remedy the situation?

## ANSWER MINISTER OF STATE FOR LABOUR AND EMPLOYMENT

## (SHRI RAMESWAR TELI)

(a)  to  (c):  The  data  on  Employment  and  Unemployment  is  collected  through  Periodic Labour  Force  Survey  (PLFS)  conducted  by  the  Ministry  of  Statistics  and  Programme Implementation (MoSPI) since 2017-18. As per the Annual PLFS Report, the estimated Labour Force Participation Rate (LFPR) on usual status for persons of age 15 years and above was 49.8%, 50.2%, 53.5% and 54.9% during 2017-18, 2018-19, 2019-20 and 202021, respectively. The data shows that Labour Force Participation Rate has an increasing trend.

Employment generation coupled with improving employability is the priority of the Government.  Accordingly,  the  Government  of  India  has  taken  various  steps  for generating employment in the country. The Government of India announced Aatmanirbhar  Bharat  package  to  provide  stimulus  to  business  and  to  mitigate  the adverse  impact  of  Covid  19.  Under  this  package,  the  Government  is  providing  fiscal stimulus  of  more  than  Rupees  Twenty  Seven  lakh  crore.  This  package  comprises  of various long term schemes/ programmes/ policies for making the country self-reliant and to create employment opportunities.

Aatmanirbhar Bharat Rojgar Yojana (ABRY) has been launched with effect from 1st October, 2020 as part of Atmanirbhar Bharat package 3.0 to incentivize employers for creation of new employment along with social security benefits and restoration of loss of employment during Covid-19 pandemic. This scheme being implemented through the  Employees'  Provident  Fund  Organisation  (EPFO),  seeks  to  reduce  the  financial burden of the employers and encourages them to hire more workers. The terminal date for  registration  of  beneficiaries  has  been  extended  from  30.06.2021  to  31.03.2022. Benefits have been provided to 59.53 lakh beneficiaries through 1.50 lakh establishments till 10.07.2022. Pradhan Mantri Mudra Yojana (PMMY) is being implemented by the Government for facilitating self-employment. Under PMMY, collateral free loans upto Rs. 10 lakh, are extended to micro/small business enterprises and to individuals to enable them to setup or expand their business activities. Upto 08.07.2022, 35.94 crore loans were sanctioned under the scheme. PM GatiShakti is a transformative approach for economic growth and sustainable development.  The  approach  is  driven  by  seven  engines,  namely,  Roads,  Railways, Airports, Ports, Mass Transport, Waterways and Logistics Infrastructure. This approach is powered by Clean Energy and Sabka Prayas leading to huge job and entrepreneurial opportunities for all. The  Government  has  put  emphasis  on  railways,  roads,  urban  transport,  power, telecom,  textiles  and  affordable  housing  amid  continued  focus  on  the  National Infrastructure  Pipeline.  Budget  2021-22  launched  Production  Linked  Incentive  (PLI) schemes, with an outlay of Rs. 1.97 lakh crore,  for a  period  of  5  years  starting  from 2021-22.  All  these  initiatives  are  expected  to  collectively  generate  employment  and

boost output in the medium to long term through multiplier-effects.

The  Government  of  India  is  encouraging  various  projects  involving  substantial investment  and  public  expenditure  on  schemes  like  Prime  Minister's  Employment Generation Programme (PMEGP), Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) and Deen Dayal Antodaya Yojana-National Urban Livelihoods Mission (DAYNULM) etc. for employment generation.

Further,  the  Ministry  of  Skill  Development  and  Entrepreneurship  (MSDE)  is implementing  the  National  Apprenticeship  Promotion  Scheme  (NAPS)  and  Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to enhance the employability of youth.

Besides these initiatives, various flagship programmes of the Government such as Make  in  India,  Start-up  India,  Stand-up  India,  Digital  India,  Smart  City  Mission,  Atal Mission  for  Rejuvenation  and  Urban  Transformation,  Housing  for  All,  Infrastructure Development and Industrial Corridors are also oriented towards generating employment opportunities.

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