Question

Read the following text carefully:
The Labour Force Participation Rate (LFPR) measures the percentage of the population either employed or actively seeking employment in a nation. In India, the labour force grew by 99·2 million persons between 2000 – 2019. The labour force grew from 396·3 million to 495·5 million.
During 2012 – 2019, the labour force grew without a matching increase in employment, leading to higher unemployment.
The gender disparity in India’s labour market is notable with women’s LFPR at 32·8% in 2022, significantly lower than men’s LFPR at 77·2%. This is a major reason for India’s overall low LFPR, which is lower than the global average of 47·3%.
During 2000 – 2019, rural LFPR declined by 14·1%, compared to a 3·5% decline in urban areas. This trend reversed between 2019 – 2022, with rural LFPR increasing by 6% (especially among rural women) and urban LFPR by 2·1%. These shifts suggest that fluctuations occur in women’s labour market participation, particularly in rural areas.
This significantly affected the overall LFPR. Women join the workforce during economic hardships and move out when conditions improve.
On the basis of the given text and common understanding, answer the following questions:
(a) Define unemployment.
(b) Write the meaning of Labour Force Participation Rate (LFPR).
(c) Comment upon the gender disparities in rural and urban Labour Force Participation Rate (LFPR) during 2000 – 2019.

Hint:

For LFPR calculations, understand the importance of distinguishing between the working-age population and those actively seeking employment. The differences in LFPR between rural and urban areas highlight the structural barriers women face in rural economies.

Answer 1

(a) Unemployment:
Unemployment refers to the condition in which individuals who are capable of working, are actively seeking employment but are unable to find any suitable work. It reflects the inability of the economy to provide jobs for the workforce. (b) Labour Force Participation Rate (LFPR):
Labour Force Participation Rate (LFPR) is the percentage of the working-age population that is either employed or actively seeking employment. It provides an insight into the labour market and the overall employment situation in an economy. The formula for LFPR is: \[ \text{LFPR} = \frac{\text{Labour Force}}{\text{Working Age Population}} \times 100 \] (c) Gender Disparities in Rural and Urban Labour Force Participation Rate (LFPR) during 2000 – 2019:
The text highlights significant gender disparities in LFPR between men and women in India. In 2022, women’s LFPR was 32·8%, far below men’s LFPR of 77·2%. In rural areas, the LFPR for women showed a significant decline of 14·1% between 2000 and 2019, compared to a much smaller decline in urban areas (3·5%). This suggests that rural women face greater challenges in entering the workforce, which could be due to social, economic, and cultural factors. However, between 2019 – 2022, rural LFPR for women increased by 6%, indicating that there was some improvement due to changing conditions, while urban LFPR showed a smaller increase of 2·1%. These fluctuations suggest that gender disparities persist but are subject to economic and social changes over time, particularly in rural areas.