The President addressed the Parliament after the 2009 Lok Sabha Elections on 4th June 2009.  She also addressed Parliament on 22nd February 2010, as well as on 21st February 2011.  The tables below highlight some items from the agenda of the central government as outlined in these speeches, as well as the initiatives undertaken with respect to these agenda items. Table 1: Some Items from the President’s Address to Parliament on 4th June 2009

Agenda Items outlined in the President’s Speech Current Status
Establishment of National Counter-Terrorism Centre Proposed launch of NCTC in March 2011 on hold
Enactment of legislation for prevention of communal violence Communal Violence Bill 2005 pending in Parliament. New bill drafted by NAC but not introduced in Parliament
Unique Identity Card scheme to be implemented in three years Unique Identification Authority of India created under Planning Commission on 28 January 2009.  Bill to give statutory status pending in Parliament
Establishment of a regulator for the pension sector Bill introduced in Lok Sabha on 24 March 2011
Convergence of NREGA with other programs; expansion of works permitted; independent monitoring and grievance redressal  
Rashtriya Swasthya Bima Yojana to cover all families below the poverty line in five years  
Enactment of Right to Free and Compulsory Education Bill Bill passed in 2009 and brought into force on 1 April 2009
Madhyamik Shiksha Abhiyan to universalize access to secondary education Rashtriya Madhyamik Shiksha Abhiyan launched in March 2009
National Mission for Female Literacy to make every woman literate in five years National Literacy Mission recast in 2009 to focus on female literacy
Construction of 1.2 crore rural houses under Indira Awas Yojana in five years  
Introduction of Rajiv Awas Yojana for slum dwellers and urban poor Phase I approved by Cabinet on 2 June 2011
Enactment of National Food Security Act Introduced in Lok Sabha on 22 December 2011
Enactment of Amendment Bill to Land Acquisition Act and Rehabilitation and Resettlement Bill Land Acquisition, Rehabilitation and Resettlement Bill 2011 introduced in Lok Sabha on 7 September 2011
Enactment of Women’s Reservation Bill Passed by Rajya Sabha, pending in Lok Sabha
Constitutional Amendment for 50 percent reservation for women in panchayats and urban local bodies Two Bills introduced in Lok Sabha in November 2009; both pending in Parliament
Amendment of RTI to provide for disclosure by government in all non-strategic areas  
Model Public Services Law to be drawn up in consultation with states Right of Citizens for Time Bound Delivery of Goods and Services and Redressal of their Grievance Bill,     2011 introduced in Lok Sabha on 20 December 2011
Introduction of Goods and Services Tax Constitutional Amendment Bill introduced in Lok Sabha on 22 March 2011
National Council for Human Resources in Health Introduced in Rajya Sabha on 22 December 2011
National Council for Higher Education Bill introduced in Rajya Sabha on 28 December 2011

*Note: Blank cells indicate that PRS has not been able to find official information in the public domain. Table 2: Some Items from the President’s speech to Parliament on 22nd February 2010

Agenda Items outlined in the President’s Speech Current Status
Introduction of legislation to ensure food security Introduced in Lok Sabha on 22 December 2011
Rural teledensity of 40 percent by 2014 Rural teledensity of 33% as of February 2011
Introduction of Rajiv Awas Yojana for urban poor and slum dwellers Phase I approved by Cabinet on 2 June 2011
Disposal of remaining claims under the Scheduled Tribes  and Other Traditional Forest Dwellers Act  
Introduction of amendment to the Wakf Act Passed by Lok Sabha; pending in Rajya Sabha
Enactment of Communal Violence (Prevention, Control and Rehabilitation of Victims) Bill, 2005 Pending in Rajya Sabha since 2005
Enactment of Women’s Reservation Bill Passed by Rajya Sabha; pending in Lok Sabha
Constitutional amendments for 50 percent reservation for women in panchayats and urban local bodies Two Bills introduced in Lok Sabha in November 2009; both pending in Parliament
Establishment of National Council for Higher Education and Research Higher Education and Research Bill, 2011 introduced in Rajya Sabha on 28 December 2011
Legislation for facilitating participation of foreign academic institutions in the education sector Foreign Educational Institutions Bill, 2010 introduced in Lok Sabha on 3 May 2010
Voting rights for Indian citizens living abroad Bill passed.  NRIs can vote at the place of residence that is mentioned in their passport

Table 3: Some Items from the President’s speech to Parliament on 21st February 2011

Agenda Items outlined in the President’s Speech Current Status
Enactment of Food Security Law Introduced in Lok Sabha on 22 December 2011
Whistleblower Bill Bill passed by Lok Sabha; pending in Rajya Sabha
Enactment of Judicial Standards and Accountability Bill Introduced in Lok Sabha on 1 December 2010
Enactment of new Mines and Minerals Bill Introduced in Lok Sabha on 12 December 2011
Rural teledensity of 40 percent by 2014 Rural teledensity of 33% as of February 2011
Construction of 1.2 crore rural houses during 2009-14  
Enactment of Women’s Reservation Bill Passed by Rajya Sabha; pending in Lok Sabha
Introduction of Bill regarding protection of children from sexual offences Introduced in Rajya Sabha on 23 March 2011
Introduction of Biotechnology Regulatory Authority of India Bill Not introduced till date

In April 2020, the International Labour Organisation (ILO) estimated that nearly 2.5 crore jobs could be lost worldwide due to the COVID-19 pandemic in 2020.  Further, it observed that more than 40 crore informal workers in India may get pushed into deeper poverty due to the pandemic.  In this blog post, we discuss the effect of COVID-19 on unemployment in urban areas as per the quarterly Periodic Labour Force Survey (PLFS) report released last week, and highlight some of the measures taken by the central government with regard to unemployment.

Methodology for estimating unemployment in PLFS reports

The National Statistics Office (NSO) released its latest quarterly PLFS report for the October-December 2020 quarter.  The PLFS reports give estimates of labour force indicators including Labour Force Participation Rate (LFPR), Unemployment Rate, and distribution of workers across industries.  The reports are released on a quarterly as well as annual basis.  The quarterly reports cover only urban areas whereas the annual report covers both urban and rural areas.  The latest annual report is available for the July 2019-June 2020 period.

The quarterly PLFS reports provide estimates based on the Current Weekly Activity Status (CWS).  The CWS of a person is the activity status obtained during a reference period of seven days preceding the date of the survey.  As per CWS status, a person is considered as unemployed in a week if he did not work even for at least one hour on any day during the reference week but sought or was available for work.  In contrast, the headline numbers on employment-unemployment in the annual PLFS reports are reported based on the usual activity status.  Usual activity status relates to the activity status of a person during the reference period of the last 365 days preceding the date of the survey.

Unemployment rate remains notably higher than the pre-COVID period 

To contain the spread of COVID-19, a nationwide lockdown was imposed from late March till May 2020.   During the lockdown, severe restrictions were placed on the movement of individuals and economic activities were significantly halted barring the activities related to essential goods and services.  Unemployment rate in urban areas rose to 20.9% during the April-June quarter of 2020, more than double the unemployment rate in the same quarter the previous year (8.9%).  Unemployment rate refers to the percentage of unemployed persons in the labour force.  Labour force includes persons who are either employed or unemployed but seeking work.  The lockdown restrictions were gradually relaxed during the subsequent months.   Unemployment rate also saw a decrease as compared to the levels seen in the April-June quarter of 2020.  During the October-December quarter of 2020 (latest data available), unemployment rate had reduced to 10.3%.  However, it was notably higher than the unemployment rate in the same quarter last year (7.9%).

Figure 1: Unemployment rate in urban areas across all age groups as per current weekly activity status (Figures in %)

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Note: PLFS includes data for transgenders among males.
Sources: Quarterly Periodic Labour Force Survey Reports, Ministry of Statistics and Program Implementation; PRS.

Recovery post-national lockdown uneven in case of females

Pre-COVID-19 trends suggest that the female unemployment rate has generally been higher than the male unemployment rate in the country (7.3% vs 9.8% during the October-December quarter of 2019, respectively).  Since the onset of the COVID-19 pandemic, this gap seems to have widened.   During the October-December quarter of 2020, the unemployment rate for females was 13.1%, as compared to 9.5% for males.

The Standing Committee on Labour (April 2021) also noted that the pandemic led to large-scale unemployment for female workers, in both organised and unorganised sectors.  It recommended: (i) increasing government procurement from women-led enterprises, (ii) training women in new technologies, (iii) providing women with access to capital, and (iv) investing in childcare and linked infrastructure.

Labour force participation

Persons dropping in and out of the labour force may also influence the unemployment rate.  At a given point of time, there may be persons who are below the legal working age or may drop out of the labour force due to various socio-economic reasons, for instance, to pursue education.  At the same time, there may also be discouraged workers who, while willing and able to be employed, have ceased to seek work.  Labour Force Participation Rate (LFPR) is the indicator that denotes the percentage of the population which is part of the labour force.  The LFPR saw only marginal changes throughout 2019 and 2020.  During the April-June quarter (where COVID-19 restrictions were the most stringent), the LFPR was 35.9%, which was lower than same in the corresponding quarter in 2019 (36.2%).  Note that female LFPR in India is significantly lower than male LFPR (16.6% and 56.7%, respectively, in the October-December quarter of 2019).

Figure 2: LFPR in urban areas across all groups as per current weekly activity status (Figures in %)

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Note: PLFS includes data for transgenders among males.
Sources: Quarterly Periodic Labour Force Survey Reports, Ministry of Statistics and Program Implementation; PRS.

Measures taken by the government for workers

The Standing Committee on Labour in its report released in August 2021 noted that 90% of workers in India are from the informal sector.  These workers include: (i) migrant workers, (ii) contract labourers, (iii) construction workers, and (iv) street vendors.  The Committee observed that these workers were worst impacted by the pandemic due to seasonality of employment and lack of employer-employee relationship in unorganised sectors.  The Committee recommended central and state governments to: (i) encourage entrepreneurial opportunities, (ii) attract investment in traditional manufacturing sectors and developing industrial clusters, (iii) strengthen social security measures, (iv) maintain a database of workers in the informal sector, and (v) promote vocational training.  It took note of the various steps taken by the central government to support workers and address the challenges and threats posed by the COVID-19 pandemic (applicable to urban areas): 

  • Under the Pradhan Mantri Garib Kalyan Yojana (PMGKY), the central government contributed both 12% employer’s share and 12% employee’s share under Employees Provident Fund (EPF).  Between March and August 2020, a total of Rs 2,567 crore was credited in EPF accounts of 38.85 lakhs eligible employees through 2.63 lakh establishments.
     
  • The Aatmanirbhar Bharat Rozgar Yojna (ABRY) Scheme was launched with effect from October 2020 to incentivise employers for the creation of new employment along with social security benefits and restoration of loss of employment during the COVID-19 pandemic.  Further, statutory provident fund contribution of both employers and employees was reduced to 10% each from the existing 12% for all establishments covered by EPF Organisation for three months.  As of June 30, 2021, an amount of Rs 950 crore has been disbursed under ABRY to around 22 lakh beneficiaries.
     
  • The unemployment benefit under the Atal Beemit Vyakti Kalyan Yojana (launched in July 2018) was enhanced from 25% to 50% of the average earning for insured workers who have lost employment due to COVID-19.
     
  • Under the Prime Minister’s Street Vendor’s Aatma Nirbhar Nidhi (PM SVANidhi) scheme, the central government provided an initial working capital of up to Rs 10,000 to street vendors.  As of June 28, 2021, 25 lakh loan applications have been sanctioned and Rs 2,130 crore disbursed to 21.57 lakh beneficiaries.

The central and state governments have also taken various other measures, such as increasing spending on infrastructure creation and enabling access to cheaper lending for businesses, to sustain economic activity and boost employment generation.