From CK Nayak
NEW DELHI, Nov 1: A study conducted by the Centre for Monitoring Indian Economy (CMIE) has found that Meghalaya has the highest labour participation rate (LPR) in the country, much above the national average.
The LPR is defined by the working population in the 16-64 age group employed or seeking employment. People still undergoing studies, housewives and persons aged above 64 are not counted.
According to the CMIE, Meghalaya has the highest LPR at 60.1 per cent, followed by Tripura (52.5per cent). Uttarakhand has the least LPR at 30.9 per cent. From January to April this year, the LPRs in rural and urban India were 40.9 per cent and 37.4 per cent respectively.
According to the study, the LPR percentage among urban males was much higher at 64.2% against 6.7% among urban females.
During the period, the unemployment rate in India was 7.43 per cent. The CMIE said a society, where a large proportion of the adult population join the labour force and are mostly gainfully employed, is one which is free from economic vulnerability.
It said such a society automatically motivates households to spend more to improve the quality of life and in the process, it propels economic growth and more employment. The think tank also said that 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.
“But, the CMIE is unable to establish CPHS (Consumer Pyramids Household Survey) any further east, to the border states of Arunachal Pradesh, Nagaland, Manipur and Mizoram. This is unfortunate but CMIE continues its efforts to extend the survey into these states,” the think tank said in a press release.
The LPR is an important metric when the economy is not growing or is in the phase of recession. It is then that people look at the unemployment data.
Incidentally, the participation of women in the labour force is also the highest in Meghalaya, the CMIE study found. For that reason, the participation rate as well as unemployment data should be looked into simultaneously to understand the overall employment status in the economy, the release said.
Experts said the present employment or unemployment status of Meghalaya cannot be considered on this data or its interpretation alone. There are a number of other factors like awareness of people, role of NGOs and civil societies and on top of it, Meghalaya is an election-bound state, they added.