Official data shows that the unemployment rate among those aged 35 or more is really low. This is true in rural and urban areas and among men and women. Do most Indians find jobs when they reach their early 30s, or is the reason something else? The short answer: in the absence of any social security remaining unemployed is not an option. So they become “self-employed.
Data from the sixth economic census of India shows that 71.7% (4.2 crore of 5.8 crore) of all ‘establishments’ in India have no hired labour. This is where the bulk of the self-employed who are not engaged in agriculture are absorbed — such as tea stall owners, pakoda sellers and roadside mechanics.
In effect, self-employment for the bulk of these people is disguised unemployment at worst, and underemployment and meagre earnings at best.
What a top economist saysWhen you look at the data, it doesn’t look like people are waiting for that Brahminical job to fall into their lap. Once they get into their thirties, all men are working
Abhijit Banerjee, Nobel Laureate, to TOI