What are the key findings of the SBI Research Report on India’s employment?
As per the SBI Research Report, India is witnessing a historic low in unemployment on account of the increased entrepreneurship at different levels of society. According to the report, there is an ongoing structural transformation in the labour market as more and more individuals are taking up entrepreneurship, which can possibly be attributed to the result of attaining higher levels of education by individuals.
What role does this story play for the recently released Periodic Labour Force Survey?
The results of the SBI survey are in line with the sixth annual periodic labour survey report from the National Sample Survey Office. This demonstrates the unemployment rate’s significant drop from 6.1% in FY18 to 3.2% in FY23. Furthermore, there was a noteworthy rise in employee involvement, rising from 36.9% to 42.4%. In addition thereto, the gender dynamics in the labour force have also improved as a result of the rising female labour force participation rates and overall gains.
What role do programs such as the Mudra Yojana play towards generating employment and formalizing credit at the community level?
The report has laid special emphasizes on how government initiatives such as the ‘Mudra Yojana’ have helped in advancing employment. These microfinance schemes for small business owners are essential to formalizing credit at the bottom of the pyramid.
The Pradhan Mantri Mudra Yojana was introduced in 2015 with the goal of regulating microfinance institutions (MFIs) and providing small business owners with access to loans of up to Rs 10 lakhs. The said initiative heavily focuses on female entrepreneurs as well as on young, educated or skilled workers.
The program’s goal is to support and guarantee Non-Corporate Small Business Sectors’ (NCSBS) access to financial facilities which enable them to become engines of GDP growth and job creation. The loans are conveniently available in three categories: Shishu, Kishore, and Tarun. These categories indicate the beneficiary micro unit’s or entrepreneur’s stage of development and funding needs, and in furtherance of the same they also end up serving as a point of reference for the subsequent graduation or growth phase.
References:
https://www.bqprime.com/nation/indias-unemployment-rate-at-record-low-says-sbi-research
