Lost Generation
India’s demographic profile has long been presented as an economic advantage.
The Centre strongly contested the narrative presented in an article by Reuters, which questioned the credibility of India’s official unemployment statistics.
Photo: IANS
The Centre strongly contested the narrative presented in an article by Reuters, which questioned the credibility of India’s official unemployment statistics.
Dated July 22, 2025, the article is based on a perception-based survey of around 50 unnamed economists and alleges a deteriorating employment scenario in India without citing any independently verifiable or data-driven analysis.
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In a detailed response shared by the Ministry of Labour & Employment, it said the article lacks transparency regarding its methodology. “There is no disclosure about who the economists are, their institutional affiliations, the basis of their selection, or the questions posed to them,” the ministry said.
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“This introduces the risk of selection bias and undermines the reliability of the conclusions.”
The government emphasised the robustness of India’s official labour statistics, particularly those released through the Periodic Labour Force Survey (PLFS) conducted by the National Statistical Office (NSO).
It underlined that the PLFS methodology is aligned with International Labour Organisation (ILO) standards and is used globally by organisations like the World Bank, UNDP, and ILOstat for comparative labour market diagnostics.
According to the latest PLFS data, the Labour Force Participation Rate (LFPR) for individuals aged 15 and above rose to 60.1 per cent in 2023–24 from 49.8 per cent in 2017–18. The Worker Population Ratio (WPR) increased to 58.2 per cent from 46.8 per cent in the same period, while the unemployment rate declined sharply to 3.2 per cent from 6.0 per cent.
Further, the youth unemployment fell from 17.8 per cent to 10.2 per cent, now lower than the global average of 13.3 per cent (as per ILO’s World Employment and Social Outlook 2024).
The Employees’ Provident Fund Organisation (EPFO) also indicated that 1.29 crore net new subscribers were added in 2024–25, up from 61.12 lakh in 2018–19. Since September 2017, over 7.73 crore net subscribers have joined the EPFO, including 19.14 lakh in April 2025 alone, suggesting a formalisation of the workforce and improved access to social security.
As per the data, self-employment has increased from 52.2 per cent to 58.4 per cent, indicating a rise in entrepreneurial activity.
Casual labour has declined from 24.9 per cent to 19.8 per cent, reflecting a shift towards more stable and autonomous forms of employment.
Contrary to claims of wage stagnation, the government highlighted that the average daily wage for casual labourers (excluding public works) has increased from Rs 294 in July–September 2017 to Rs 433 in April–June 2024.
The average monthly salary of regular employees also rose from Rs 16,538 to Rs 21,103 during the same period.
The Centre stressed that subjective opinion polls, such as the one cited by Reuters, cannot replace methodologically sound, representative, and internationally benchmarked surveys like the PLFS.
“India’s employment landscape is undergoing a positive structural shift, backed by data and sustained policy action. Constructive debate is welcome, but it must be grounded in empirical evidence—not anonymous perceptions,” the statement added.
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