Unemployment and labour market recovery policies

Swati Dhingra and Fjolla Kondirolli

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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; COVID-19 pandemic; Long-term unemployment; Informal economy; Household survey data (search for similar items in EconPapers)
JEL-codes: E24 E26 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2022-06-27
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Indian Economic Review, 27, June, 2022, 57(1), pp. 223 - 235. ISSN: 0019-4670

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Journal Article: Unemployment and labour market recovery policies (2022)
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