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Disguised Unemployment

33 0
07.03.2026

India has witnessed a marked increase in labour force and workforce participation rates in recent years. The dynamics of this change and its implications for workforce structure, composition, and labour productivity are examined using data from the inaugural (2017–18) and sixth (2022–23) rounds of the Periodic Labour Force Survey. 

The author thanks the anonymous referee for their comments and suggestions. 

Despite impressive post-reform economic growth, India’s labour-market outcomes were marked by jobless growth, stunted structural transformation, and declining female labour force participation (Basole 2022; Afridi et al 2023; Dasgupta and Basole 2023; Tejani 2016). Labour force growth lagged behind gross domestic product (GDP) and population growth, with low or negative employment elasticity. Although recent estimates show improvements, these trends require cautious interpretation (State of Working India 2023; Dhamija and Chawla 2023). Understanding the dynamics of change and its implications for structure, composition and labour productivity is essential. 

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