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.

---

27 June 2022

---

Indian Economic Review 57(1) , pp.223-235, 2022

---

DOI: 10.1007/s41775-022-00136-x

https://link.springer.com/article/10.1007/s41775-022-00136-x

This Journal article is published under the centre's Trade programme.