Industry Clusters
By encouraging and assisting in the creation of industry clusters, such as technology parks, industrial parks, and business incubators, companies will be encouraged to group together in clusters to increase efficiency, cut costs, and generate employment. This can serve as a powerful tool of city planning, which can help in developing the economy of under-served areas by incentivizing the establishment of industrial groups.
In what ways Employment can be increased in Urban Areas?
Urban and metropolitan regions are the centres of our country’s economy. These bustling hubs lure from rural areas and neighbouring countries in search of better employment and entrepreneurial opportunities. However, conversely, this is a cycle that results in increased unemployment: as more people settle in urban areas, there is a greater need for employment opportunities, which in turn causes a significant number of unemployed people. As such, it is a pressing need to explore ways to boost employment in urban areas. This article will explore the same.
What is the current scenario of Employment in Urban Areas in India?
First, let us look at the current scenario of unemployment and labour force participation in India, as per figures reported b Centre for Monitoring Indian Economy (CMIE).
Metric | Status |
Urban Unemployment Rate |
7.5% |
Rural Unemployment Rate |
5.2% |
Labour Force Participation Rate for Women in Metropolitan Areas |
17.5% |
Labour Force Participation Rate for Men in Metropolitan Areas |
52.5% |
Percentage of Urban Employees in the Informal Sector |
Almost 90% |
Top 3 Cities with Highest Unemployment Rate |
Delhi (16.7%), Mumbai (12.1%), Chennai (11.6%) |
Urban unemployment hit a record high of 24.4% in April 2020 as a result of the COVID-19 pandemic, which had a significant impact on employment. While employment grew gradually, youth unemployment in urban areas was still 20.8% in December 2021, and 16.5% for those living in rural areas.