Despite a dip, Nagaland retains highest unemployment rate status in India

Over half of youth population unemployed in the State, highlights PLFS report 

Moa Jamir 
Dimapur | June 16

A year after regaining the unflattering distinction of having the highest unemployment rate among the States and Union Territories (UTs) in India, Nagaland has retained the status in the latest Periodic Labour Force Survey (PLFS) for 2020-21 released by the Union Ministry of Statistics and Programme Implementation (MoSPI).

The annual PLFS report for July 2020 to June 2021, however, showed a decline in the unemployment rate (15 years and above) from 25.7% in 2019-20 to 19.2% in 2020-21. For all ages, it was 19.3% in Nagaland. 

With a reference period of the last 365 days preceding the survey, it implied that 19.2% of the adult population, willing to work and actively seeking employment, could not get any work during the July 2020-June 2021 period.  

The enormity of the situation is best illustrated when compared with the all-India data.

During the same period, unemployment rate in India fell to 4.2% from 4.8% from the previous year. In other works, only 4.2% of adults looking for a job were unemployed against 19.2% in Nagaland.

At 13.4%, the unemployment rate in Lakshadweep was nearest to Nagaland among the States and UTs in India.  Goa at 10.5% and Kerala at 10.1% were third and fourth highest respectively.  

At 1.1%, Sikkim had the lowest unemployment rate among the States/UTs in India, followed by Meghalaya (1.7%) and Madhya Pradesh (1.9%).

The unemployment rates in other North-East States from highest to lowest were Arunachal Pradesh (5.7%), Manipur (5.6%), Assam (4.1%), Mizoram (3.5%) and Tripura (3.2%)

The PLFS report further indicated that at 24%, the unemployment rate in urban area of Nagaland was higher than rural area at 17.7% in the 15 years and above age group. 

Male unemployment was higher in rural area (18.7%) against 16.1% females, while in urban area, it was reversed with 31.8% female and 20.5% male unemployment rate. The all-India unemployment rate for rural area was 3.3% against 8.6% in urban area. 

Massive youth unemployment 
The PLFS report further highlighted  a concerning scenario among the youth in the 15-29 years age group, with over half of them unemployed.

A total of 55.2% in the cohort were unemployed during July 2020 to June 2021 in Nagaland, as per the report. 

During the same period, the All-India rate is shown to be 12.9% and the nearest to Nagaland was Lakshadweep at 47.6% and Ladakh at 42.3%.

On a ‘positive note,’ the 55.2% youth unemployment in Nagaland was a sharp fall from the massive 70.1% recorded during the previous year. 

The Worker Population Ratio (15 years and above) or the percentage of employed persons in the population was among the lowest in Nagaland at 49.5% while it averaged 52.6% nationally.

Type of employment 
Incidentally, among those giving their status as employed (workers), a total of 61.5% were self-employed in Nagaland – with 42.2% as ‘own account worker, employer’ and 19.1% as ‘helper in household enterprise.’ The national average for ‘all self-employed’ was 55.6%.

However, Nagaland scored better in terms of ‘regular wage/salary’ with 35.4% employed receiving the same against the national average of 21.1%. 

There were 3.3% casual labourers among those employed in Nagaland  against the all-India rate of 23.3%. 

Survey period 
The PLFS is conducted by the National Statistical Office (NSO) under MoSPI since 2017 and the fourth annual report was based on the data collected for the period July 2020-June 2021.

MoSPI informed that the survey in Nagaland covered 72 villages 576 households and 2,344 persons in rural areas, while 56 blocks, 448 households and 1,810 persons were taken as sample for urban areas. 

The unemployment rate cited above is based on usual status (i.e. usual principal status and the subsidiary status), which estimates persons who either worked or were seeking/available for work for a relatively long part of the 365 days preceding the date of survey and those from the remaining population who had worked at least for 30 days during the reference period.

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Nearly 1/3 of ‘educated persons’ unemployed in Nagaland: PLFS report