The Hindu Editorial Analysis
11 October 2025
Unemployment is Still a Core Issue in Bihar
(Source – The Hindu, International Edition – Page No. – 8)
Topic : GS Paper I & II – Indian Society and Governance | GS Paper III – Economic Development
Context
Unemployment has long been a politically and economically persistent issue in Bihar, dominating both discourse and voter sentiment. Post-poll surveys and Lokniti-CSDS data since 2015 consistently show “jobs and livelihoods” as one of the most important election issues. Despite rapid population growth and some policy interventions, the employment situation in Bihar remains grim, making it a decisive factor in upcoming state elections.
This editorial analyzes insights from the Periodic Labour Force Survey (PLFS) 2023–24, comparing Bihar’s employment scenario with other states and exploring structural reasons behind its chronic joblessness.
1. Understanding Bihar’s Unemployment Dynamics
a) Key Indicators: WPR, LFPR, and UR
To assess true employment health, one must consider three interrelated indicators from the PLFS:
- Worker Population Ratio (WPR) – percentage of working population in total population.
- Labour Force Participation Rate (LFPR) – share of working-age population that is either employed or actively seeking work.
- Unemployment Rate (UR) – share of labour force that is jobless but actively seeking employment.
In April–June 2025, Bihar’s WPR was 46.2%, LFPR 51.6%, and UR 10.4%.
This indicates that nearly half the working-age population is economically inactive, reflecting both lack of job opportunities and widespread withdrawal from the labour market — the “Discouraged Worker Effect.”
2. Comparative Analysis: Bihar vs. Other States
When compared with similar low-income and populous states (e.g., Jharkhand, Uttar Pradesh, Madhya Pradesh, Odisha, Rajasthan, and Chhattisgarh), Bihar consistently ranks among the lowest in both WPR and LFPR.
- Bihar’s Female WPR: 30.8%, among the lowest nationally.
- National Average Female WPR: 49.3%.
- Only 5.7% of Bihar’s workers are engaged in regular salaried jobs.
- 67.3% work as casual labourers or self-employed, often in agriculture or informal sectors.
These figures reveal the dominance of underemployment and informality, showing a mismatch between the state’s youthful population and its limited formal job base.
3. Structural Causes Behind Chronic Unemployment
a) Education and Skill Deficit
- Despite an increase in literacy (from 61.8% in 2011 to 71.9% in 2024), skill development remains poor.
- Bihar lags behind in technical and vocational education, creating a gap between academic achievement and employability.
b) Migration Dependency
- With limited local employment, migration has become a coping mechanism.
- Over 30 lakh workers migrate annually to other states, especially for construction, manufacturing, and informal labour.
- This results in remittance-driven consumption but no structural development or productive job creation within the state.
c) Low Industrialization
- Bihar’s share in India’s manufacturing output remains minimal.
- Industrial stagnation, land constraints, and infrastructure bottlenecks have prevented diversification of its economic base.
4. Misleading Unemployment Metrics
The editorial rightly notes that focusing solely on the unemployment rate (UR) presents a misleadingly optimistic picture, as it excludes those who have stopped looking for work altogether.
In Bihar, many women and youth fall in this category, indicating labour market distress beyond what the UR captures.
The PLFS quarterly survey (April–June 2025) shows that for every 100 working-age individuals, only 30 are working, while 70 remain non-employed — a concerning indicator for a state aiming demographic dividend utilization.
5. Government Response and Policy Limitations
While Chief Minister Nitish Kumar’s administration has focused on education reforms and women’s empowerment, unemployment remains largely unaddressed structurally.
Government employment programs like Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) offer temporary relief but fail to provide sustainable, skill-based employment.
The absence of industrial clusters, MSME development policies, and formal job networks exacerbates the problem. Additionally, public sector job creation has stagnated despite demand.
6. Way Forward: A Multi-Dimensional Strategy
a) Revive Education-Employment Linkages
- Introduce vocational training and skill alignment programs with private industry collaboration.
- Modernize ITIs, polytechnics, and industrial training schemes tailored to Bihar’s resource base (agro-processing, textiles, construction).
b) Promote Local Industrial Growth
- Establish industrial corridors and cluster-based entrepreneurship zones, particularly in semi-urban and rural regions.
- Encourage public–private partnerships (PPPs) for manufacturing, logistics, and renewable energy.
c) Gender-Focused Labour Inclusion
- Expand microcredit and women-led self-employment schemes.
- Offer incentives for female workforce participation through flexible work and childcare support.
d) Institutional and Statistical Reforms
- Improve data collection to monitor informal sector dynamics.
- Use PLFS annual and quarterly trends to design district-level employment missions.
Conclusion
Unemployment in Bihar is not merely an economic metric but a political and developmental crisis. The state’s youthful demographic, combined with structural stagnation and skill deficits, demands a comprehensive job creation roadmap.
Addressing this requires a dual approach — short-term interventions (expanding public works, skilling programs) and long-term strategies (industrialization, education reform, and labour market modernization).
Without a clear employment vision, Bihar risks perpetuating a cycle of outmigration, informalization, and underdevelopment, undermining both its growth potential and social stability.