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27th May 2022 (6 Topics)

Labour participation rate higher in rural India: CMIE


Economic research think-tank Centre for Monitoring Indian Economy (CMIE) has estimated that labour participation rate (LPR) was higher in rural India during the period January to April 2022.


Labour Force Participation Rate (LFPR):

  • According to the CMIE, the labour force consists of persons aged 15 years or older, who are either employed or unemployed and actively looking for a job.
  • In other words, LPR is the number of persons of the labour force employed as a percentage of working age population.
  • LFPR represents the “demand” for jobs in an economy.

Key findings of Centre for Monitoring Indian Economy (CMIE):

  • LPR is 9 in rural India as compared to 37.4 in urban India during the period January to April 2022.
  • According to CMIE, the percentage of LPR among urban male is much higher at 2% as against 6.7%among urban female.
  • During the period unemployment rate in India was 7.43%, with 7.8% in urban India and 7.2 per cent in rural areas.
    • An increase in unemployment reduces aggregate spending power, slows down economic growth and enhances the economic vulnerability of the households to deal with economic shocks.
  • According to CMIE, state-wise LPR is the highest in Meghalaya at 60.1%, followed by 52.5% in Tripura and the least in Uttarakhand at 30.9%.
  • LPR in West Bengal during the period stood at 44.6%, almost at par with Assam at 44.5 per cent

Centre for Monitoring Indian Economy:

  • CMIE, or Centre for Monitoring Indian Economy, is a leading business information company.
  • It was established in 1976, primarily as an independent think tank.
  • CMIE has a presence over the entire information food-chain - from large scale primary data collection and information product development through analytics and forecasting.
  • It provides services to the entire spectrum of business information consumers including governments, academia, financial markets, business enterprises, professionals and media.
  • CMIE produces economic and business databases and develops specialised analytical tools to deliver these to its customers for decision making and for research.
    • It analyses the data to decipher trends in the economy.
  • CMIE has built India's largest database on the financial performance of individual companies;
    • it conducts the largest survey to estimate household incomes, pattern of spending and savings;
    • it runs a unique monitoring of new investment projects on hand and it has created the largest integrated database of the Indian economy
  • CMIE is a privately owned and professionally managed company head-quartered at Mumbai

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