Unemployment and labour market recovery policies

Swati Dhingra and Fjolla Kondirolli

Indian Economic Review, 2022, vol. 57, issue 1, No 8, 223-235

Abstract: Abstract Evidence shows long-term unemployment (LTU) can have life-long scarring impacts on the future employment and earning prospects of individuals and lead to an overall deterioration in the wellbeing of communities. This article examines long-term unemployment in India, providing some of the first estimates from a panel of individuals before and during the pandemic. It shows that LTU makes up a substantial proportion of unemployment among the working-age population, particularly among young workers who have fared even worse since the pandemic. Existing benefits have proven inadequate in addressing long-term unemployment and young workers have a strong desire for active labour market policies from the government to address the worklessness crisis. A national-level commitment to active labour market policies could prevent a lost generation of young workers from falling into long-term unemployment and the ills that accompany it.

Keywords: Long-term unemployment; Informal economy; COVID-19 pandemic; Household survey data (search for similar items in EconPapers)
JEL-codes: E24 E26 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s41775-022-00136-x

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