The rise in LFPR may have been caused by massive layoffs in the technology sector and startup economy amid a challenging macroeconomic environment.

Highlights of the April jobs report 

CMIE’s unemployment report for April highlighted the following:

“The notable rise in LFPR and employment rate in India in the month of April reflects an increase in willingness among people to seek employment,” Vyas wrote in the Business Standard.

Rural India has created more jobs

Around 95% of those who joined the rural workforce found jobs, data showed.

This could be because the demand for work under the government’s rural employment scheme moderated in January due to a recovery in informal-sector employment, according to the Reserve Bank of India’s (pdf) April bulletin.

However, only 54.8% of the urban jobseekers found new jobs. Job creation, therefore, remains an acute challenge for the world’s most populous nation.

Why is India unable to create enough jobs?

Structural problems linked to skill formation and curriculum reform hinder job growth in India. A study by talent assessment firm Wheebox concluded that half of India’s graduates are unemployable due to poor education and training.

“We do face a challenge in hiring as specific skill sets required for the industry are not currently easily available in the market,” said Yeshwinder Patial, director for human resources at MG Motor India, told Bloomberg. He was referring to tech skills such as cloud computing, artificial intelligence, industrial design and more.

Unfortunately, India’s educational institutions are far behind on this front.

📬 Sign up for the Daily Brief

Our free, fast, and fun briefing on the global economy, delivered every weekday morning.