Unemployment rate down, but does that mean more jobs created? Data suggest otherwise
India Today
The unemployment rate dropped to 6.6 per cent in January 2022 from 7.2 per cent in January 2020. However, according to data, the reason behind the dip is not due to the creation of more jobs, but due to a decline in people looking for jobs.
The Covid-19 pandemic severely hit the job market in 2020. Two years later, its effects are still visible in the economy, more so in the informal sector. While restrictions and lockdowns led to a massive job shedding in 2020, workers seem reluctant to get back into the job market even now.
The unemployment rate dropped to 6.6 per cent in January 2022, which is lower than the pre-pandemic levels of 7.2 per cent in January 2020. However, the reason behind the dip in unemployment is not the addition of jobs — rather, it was caused by the decline in the number of people looking for jobs. The number of unemployed people fell by 66 lakhs in January 2022, as they stopped looking for jobs. Consequently, they were no longer counted as unemployed.
According to the Centre for Monitoring Indian Economy, “Employment did not expand to absorb the unemployed in January. On the contrary, employment shrunk by 33 lakhs. The labour force participation rate fell from 40.9 per cent in December 2021 to 39.9 per cent in January 2022. These two ratios show the real stress in the labour markets in January.” This is a perfect example of why the unemployment rate is not a very reliable measure of labour market stress, the CMIE added.
The Reserve Bank of India, too, underlined the roadblock of labour shortage hampering companies’ productivity. “Sentiments improved over subsequent survey rounds, but companies reported unavailability of raw materials, working capital requirement along with labour shortage as major constraints,” a February 2022 RBI bulletin noted.
The haphazard manner in which daily-wage workers were forced to quit jobs during the first and second waves of the pandemic has instilled fear among the working class. It has also taught them new ways of earning a livelihood.
ALSO READ: Budget 2022: Creation of 60 lakh jobs next target of govt, says FM Nirmala Sitharaman
“All those who migrated are not willing to come back to the labour market, and many women have post-pandemic decided to not enter/reenter the labour market,” Gayathri Vasudevan, Chairperson at LabourNet Services India, told India Today.
For years, Ram Setu has been invoked as "national heritage" in political discourse. But an RTI response reveals that, in official records, its status remains "nil".
Two LPG tankers tracked by India Today's OSINT team have taken the new route via Larak-Qeshm to cross the Strait of Hormuz.
What began as an abuse complaint has snowballed into a massive scandal involving rape allegations, hidden camera evidence, fraud and even murder claims, as more victims come forward against a Nashik godman.
From April 2026, the Delhi government is planning to recover over Rs 38,000 crore in dues to discoms.
The bill could increase total Lok Sabha seats to 816, reserving 273 for women, marking a major push to enhance female representation in Parliament based on the 2011 census.
Students told the Mahila Congress that the LPG shortage had disrupted their daily meals. They said the hostel administration had altered the menu, reduced one meal and discontinued evening tea in recent days.
India's consumer courts promise quick justice, but rising backlogs and staff shortages tell a different story. As cases pile up, the gap between what the system offers and what it delivers is widening.
A second patient died within 72 hours at RG Kar Hospital, with his family alleging that a lack of stretcher and basic facilities forced the critically ill man to walk 100 metres, leading to his death.
As Parliament prepares to bring amendments to the Transgender Act, activists warn the proposed changes risk rolling back years of hard-won rights.
A high-speed boat crash in the Maldives has left two Indians missing, including a celebrated rally figure, even as Gautam Singhania returns home. Search teams continue efforts amid mounting concern and unanswered questions.
A prominent seer, Pranavananda Swamiji, alleged that mutts backing Karnataka Deputy Chief Minister DK Shivakumar to take over the top post were denied any allocation in the state budget presented by Chief Minister Siddaramaiah. He reiterated his support for Shivakumar to take over as the chief minister.
India's original Dhurandhar, Ravindra Kaushik, rose from acting at college theatres, to infiltrating the Pakistan Army as a RAW Agent. He provided critical intelligence on Pakistani troop movements and the country's nuclear programme, but died a lonely death after his betrayal and subsequent capture by the ISI.