Bihar Elections: Why the Drop in Unemployment Isn’t as Real as It Looks

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Patna: As Bihar heads into the final phase of its Assembly elections on November 11, one crucial issue seems to have quietly slipped out of political conversations — unemployment. The ruling alliance proudly claims that the state’s unemployment rate has dropped sharply — from 8% in 2017–18 to just 3% in 2023–24. But a closer look reveals a more complicated truth: the fall in numbers doesn’t necessarily mean more real jobs.

According to government data, youth unemployment also followed a similar trend — it declined from 31% in 2018–19 to 4.3% in 2022–23, but has since risen again to nearly 16%. So why, despite a statistical decline in unemployment, does Bihar still not feel the improvement on the ground?

A Decline That’s Not a Relief

At first glance, the figures appear encouraging. But economists caution that the reality behind the data tells a different story. Bihar’s unemployment rate may have dropped, but it remains above the national average, and the quality of available jobs paints a grim picture. Most new employment in Bihar is temporary, insecure, or informal, rather than stable or well-paying.

Severe Shortage of Regular Salaried Jobs

One of Bihar’s deepest structural problems is the shortage of regular, salaried employment — jobs that provide steady income, social security, and long-term stability. Among major Indian states, Bihar ranks at the bottom in this category. Even before the pandemic, the share of regular wage earners in the state stood at just about 10%, and it has declined further since then.

In simple terms, more people may be ‘employed’ today, but fewer have decent, secure jobs that can actually support a family or sustain growth.

Explosion of Informal and Casual Work

While stable jobs have shrunk, informal and household-based work has surged. Daily wage labor — typically without fixed hours, consistent pay, or any benefits — has seen a dramatic rise. In 2017–18, about 5% of Bihar’s workforce was engaged in such casual labor. By 2023–24, that figure had jumped to over 21%.

These are not the signs of a booming economy, experts say, but rather evidence of economic distress — where people are taking whatever work they can find simply to survive.

The Hidden Problem of Underemployment

This shift suggests that Bihar’s low unemployment rate may be misleading. Many people who would previously have been counted as unemployed are now engaged in low-paying, unstable, or unpaid household work — often just to make ends meet.

In effect, the state appears to have reduced unemployment only on paper. Beneath the surface lies a growing problem of underemployment and disguised joblessness — a reminder that quantity of work does not always mean quality of employment.

As the election campaigns reach their peak, Bihar’s leaders may be celebrating improved figures — but for millions of young workers still struggling to find stable livelihoods, the promise of jobs remains more statistical than real.