ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Signs of a Deeper Crisis

Unfolding the Employment Story in Uttar Pradesh

The article examines labour market changes in Uttar Pradesh and fi nds a deeper employment crisis in the state. The analysis shows a sharp decline in workforce participation and an increase in unemployment levels across all age groups and education levels after 2011–12. Employment decline was particularly high among the youth and the most educated. Female workforce participation hit a historic low in 2018–19.

India has been enjoying a high growth rate since the 1990s and was predicted to be the next growth miracle. Aided by a demographic dividend, nothing could have halted its momentum. However, several studies have been continuously pointing at the fault lines and the danger of falling into the middle-income trap (Aiyar et al 2013; Kelkar and Shah 2019). Aiyar and Mody (2011) show that a significant part of India’s high economic growth since the 1980s was the result of a demographic dividend. Realising the demographic dividend is contingent upon the creation of employment opportunities in the economy and participation of youth in the workforce. The demographic dividend may turn into a curse if there is a lack of employment opportunities.

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Updated On : 31st May, 2022
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