Lok Sabha Question No. 4365 (UNSTARRED), answered on 2023-03-27
Subject: Labour Participation Rate
Ministry: LABOUR AND EMPLOYMENT
Asked by: Kalyan Banerjee

## MINISTRY OF LABOUR AND EMPLOYMENT

## GOVERNMENT OF INDIA LOK SABHA

## UNSTARRED QUESTION NO. 4365

TO BE ANSWERED ON 27 TH  MARCH, 2023

## LABOUR PARTICIPATION RATE

## 4365.  SHRI KALYAN BANERJEE :

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

- (a)
- whether  the  'labour  participation  rate'  in  the  country  has  come down to 39 per cent in 2022 actual year as against about 50 per cent in 2016 and 52 per cent in 2011; and
- (b)   if so, whether the Government has any proposal to create more job potentiality in the country?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SHRI RAMESWAR TELI)

(a) & (b): The official data on Employment and Unemployment is collected through  Periodic  Labour  Force  Survey  (PLFS)  which  is  conducted  by  the Ministry of Statistics & Programme Implementation (MoSPI) since 2017-18. The survey period is July to June of next year. As per the latest available Annual  PLFS  Reports,  the  estimated  Labour  Force  Participation  Rate (LFPR) on usual status for persons of age 15 years & above has increased to 55.2% during 2021-22 from 49.8% in 2017-18.

Prior  to  PLFS,  Employment-Unemployment  Survey  (EUS)  was conducted by the Labour Bureau, Ministry of Labour and Employment for the  years  2010-11  to  2016-17.Results  from  both  surveys  viz.  PLFS  and Labour Bureau are not comparable due to different sampling methodology and coverage. PLFS covers seasonality of labour force as it is conducted during the period July to June (i.e. full year) whereas field work in Labour Bureau  survey  varied  from  7  to  9  months  and  therefore,  complete seasonality was not covered.

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.

Investments in Infrastructure and productive capacity have a large multiplier  impact  on  growth  and  employment.  The  budget  of  2023-24 proposed to increase capital investment outlay steeply for the third year in a row by 33 per cent to Rs 10 lakh crore, which would be 3.3 per cent of GDP. This substantial increase in recent years is central to the government's efforts to enhance growth potential and job creation.

The  Government  of  India  has  announced  Aatmanirbhar  Bharat package  to  provide  stimulus  to  business  and  to  mitigate  the  adverse impact  of  Covid  19.  Under  this  package,  the  Government  has  provided 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.

The Aatmanirbhar Bharat Rojgar Yojana (ABRY) was launched with effect from 1st October, 2020 to incentivize employers for creation of new employment  and  restoration  of  loss  of  employment  during  Covid-19 pandemic. The terminal date for registration of beneficiaries was 31.03.2022. Since inception of the scheme, till 11.03.2023, benefits have been provided to 60.3 lakhs beneficiaries under the scheme.

The  Government  is  implementing  Prime  Minister  Street  Vendor's AtmaNirbharNidhi (PM SVANidhi Scheme) since June 01, 2020 to facilitate collateral  free  working  capital  loan  to  street  vendors  to  restart  their businesses, which were adversely impacted during the Covid-19 pandemic. As on 13.03.2023, 42.21 lakh loans have been disbursed under the scheme.

Pradhan Mantri  Mudra  Yojana (PMMY)  was  launched  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. As on 24.02.2023,  more  than  39.65 crore loan  accounts sanctioned under the scheme.

The Government of India is encouraging various projects involving substantial  investment  and  public  expenditure  on  schemes  like  Prime Minister's Employment Generation Programme (PMEGP), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Pt. Deen Dayal Upadhyaya Grameen  Kaushalya Yojana (DDU-GKY) and Deen Dayal Antodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) 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. The Production Linked Incentive (PLI) schemes is being implemented by the Government with an outlay of Rs. 1.97 lakh crore, for a period of 5 years starting from 2021-22 which have potential for creating 60 lakh new jobs. 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. Besides  these  initiatives,  various  flagship  programmes  of  the Government such as Make in India, Start-up India, Stand-up India, Digital India, Housing for All etc. are also oriented towards generating employment opportunities. All these initiatives are expected to collectively  generate  employment  in  the  medium  to  long  term  through multiplier-effects.

*****