Introduction The study of unemployment and workforce participation is crucial for understanding the economic dynamics of any region. The report titled "Unemployment Rate in Andhra Pradesh," presented in the Lok Sabha as an unstarred question (No. 3513), provides valuable insights into the labor market of Andhra Pradesh (AP) from 2014 onwards. This literature review synthesizes key findings from the document, examining trends in unemployment, workforce participation, job creation, and migrant labor dynamics in the state.
Unemployment and Workforce Participation Trends The report utilizes data from the Periodic Labour Force Survey (PLFS) conducted by the National Statistical Office (NSO) since 2017-18 to analyze unemployment and labor force participation rates (LFPR) for individuals aged 15 years and above. Key findings indicate fluctuations in these rates over the years:
● 2017-18: The unemployment rate (UR) was 4.5%, while the LFPR stood at 59.9% for individuals aged 15 and above.
● 2018-19: The UR increased to 5.3%, and the LFPR dropped to 57.8%.
● 2019-20: The UR slightly decreased to 4.7%, while the LFPR showed a marginal recovery at 58.2%. These figures suggest variations in employment opportunities and labor market dynamics, potentially influenced by macroeconomic conditions, policy interventions, and external shocks like the COVID-19 pandemic.
Job Creation Initiatives and Employment Generation The document provides insights into job creation efforts in Andhra Pradesh, particularly through government schemes such as:
- Employees Provident Fund Organisation (EPFO) Payroll Data:
○ The net payroll data from EPFO highlights an increasing trend in employment within the organized sector, with figures rising from 54,286 in 2017-18 to 187,986 in 2020-21.
- Aatmanirbhar Bharat Rojgar Yojana (ABRY):
○ Launched in 2020 to mitigate COVID-19 employment losses, ABRY provided financial incentives to employers, benefiting 1.08 lakh workers across 3,045 establishments in AP as of December 2021.
- Pradhan Mantri Mudra Yojana (PMMY):
○ This initiative facilitated self-employment through microfinance loans, with Rs. 10,090.71 crore disbursed in 2019-20 in Andhra Pradesh.
- Skill Development Programs:
○ Under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), short-term training and recognition of prior learning programs placed 90,851 candidates (PMKVY 2.0) and 716 candidates (PMKVY 3.0) in employment in AP.
Migrant Labor and Workforce Movement Migration trends are crucial for understanding labor market fluctuations. The report highlights two key aspects of migration:
● Outbound Migration:
○ 32,571 inter-state migrant workers returned to AP during the pandemic.
● Inbound Migration:
○ 32,945 skilled workers returned from overseas to AP under the SWADES (Skilled Workers Arrival Database for Employment Support) initiative. These numbers illustrate significant labor mobility trends, shaped by economic opportunities, social factors, and crises like the COVID-19 pandemic.
Conclusion The report provides valuable empirical data on employment trends, workforce participation, job creation, and migration in Andhra Pradesh. The increasing payroll data, coupled with employment-generation schemes, suggests efforts to enhance labor market stability. However, fluctuations in unemployment rates indicate the need for sustained policy interventions. Future research could explore the qualitative impacts of these trends, assessing the effectiveness of policy measures in addressing employment challenges in Andhra Pradesh.
Diya Gupta
Research Intern (Media)