India’s Labour Participation Rate drops in FY23; falls behind Indonesia, Brazil: CMIE

New Delhi, June 28 (KNN) The labour participation rate (LPR) of India has declined from 40.1% in financial year 2022 to 39.5% in financial year 2023, said Centre For Monitoring Indian Economy (CMIE).

According to CMIE’s data, India’s LPR is one of the lowest compared to global estimate of 60%.

The data cited by the analysis suggested that around 90% of women in their working age are out of India’s labour force. 

According to the definition of LPR, it refers to share of working age population which is either employed or unemployed, looking for employment.

Compared to LPR of Indonesia (67%), South Korea and Brazil (63-64%), India’s LPR is behind with quite a margin.

CMIE analysis said that the low participation rate is a worrying sign as a large share of population has dropped out of the workforce and isn’t willing to seek employment.

A sharp decline in Indian workforce was seen during the pandemic when the workforce declined from 442 million in 2019-20 to 424 million in 2020-21.

This recovered to 439 million in 2022-23 but was still lower than the pre-pandemic level.  (KNN Bureau)