Chapter 5: Labour, Employment and Skill Development

1. Labour Force Participation and Employment Status

• Bihar’s Labour Force Participation Rate (LFPR) in 2022–23 is 43.4%, lower than the national average of 56%.
  • Male LFPR: 70.6%
  • Female LFPR: 15.6%
• The Unemployment Rate is 3.4%, slightly higher than the national average of 3.2%.
• Youth unemployment (urban, age 15–29): 10.8%.
• High dependence on self-employment and casual labour, especially in rural areas.
• Agriculture continues to dominate employment, but construction and trade sectors are growing sources of jobs.
• Out-migration remains significant, especially among young rural males.

2. Skill Development Initiatives

• Kushal Yuva Programme (KYP):
  • For youth aged 15–28.
  • Offers training in soft skills, communication, and IT.
  • Nationally recognised; awarded by SKOCH and appreciated by NITI Aayog.
• Recognition of Prior Learning (RPL):
  • For those aged 18–59 with informal sector experience.
  • Enables certification under NSQF, helping transition into formal jobs.
• SANKALP Yojana:
  • A World Bank-supported initiative.
  • Emphasises innovative, sector-specific, and demand-driven skill training.
• Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY):
  • Focused on rural poor youth.
  • Implemented in Bihar through JEEVIKA as a support partner.
• Rural Self-Employment Training Institutes (RSETIs):
  • Provide training in agriculture, product manufacturing, and general trades.
  • Aim to promote micro-entrepreneurship.
• Mega Skill Centres (Patna):
  • Developed under the hub-and-spoke model.
  • Focused on providing high-quality training in urban Bihar.

3. Achievements and Recognition

• Bihar won 13 medals (4 Gold, 2 Silver, 5 Bronze) in the World Skills Competition 2023.
• BSDM organised state-level contests in partnership with NSDC.
• Steps being taken to map industry demand and update training curricula accordingly.

4. Passport Issuance Trends

• Over the past 5 years:
  • 1,703.9 thousand passport applications were received.
  • 1,683.1 thousand passports were issued.
• Banka district recorded the highest growth in passport applications at 70%.

Conclusion

Bihar continues to face structural challenges in employment, including low female LFPR and high youth unemployment. However, the state has expanded its skill development ecosystem, driven by targeted schemes like KYP, DDU-GKY, and SANKALP. These initiatives are aligning youth training with market demand, promoting formal employment and self-reliance.