This collage image gives a snapshot of Nagaland’s unemployment rate, categories of employment, tourist footfall and registrations on e-Sharm portal. (Morung Image)
Deconstructing diverse realities of the State’s unemployment paradox
Moa Jamir
Unemployment remains one of Nagaland's most pressing challenges, reflected in both comparative national statistics and anecdotal lived experiences.
Before exploring the issue in depth, however, it understood that in today’s predominantly market-driven economy, the concept of "full employment"—where unemployment is reduced to zero—is largely theoretical. Instead, an acceptable level of unemployment is typically one that accommodates frictional, seasonal, and structural unemployment.
Unemployment, in this context, is viewed as a natural aspect of the labour market, often representing a transitional phase before securing the next job opportunity.
NAGALAND’S UNEMPLOYMENT STATUS
Against this backdrop, the scale of unemployment in Nagaland can be examined through data from the Periodic Labour Force Survey (PLFS) reports published by the Union Ministry of Statistics and Programme Implementation (MoSPI).
As per the latest PLFS report (July 2023 to June 2024), the unemployment rate in Nagaland in the 15 years and above category increased by over 65% to 7.1%, after declining for three consecutive years.
The national average was 3.2% and Nagaland’s status was second highest among states in India, after Goa (8.5%).
The rate was as high as 25.7% unemployment rate in 2019-20, but declined thereafter as low as 4.3 in 2022-23, before rising last fiscal.
Further, the unemployment rate among youth (aged 15-29) stood at 27.4%, marking a reversal of a three-year downward trend.
There was a higher youth unemployment rate in urban areas at 39.6%, compared to 23.1% in rural areas. Nagaland’s youth unemployment rate ranks second highest among Indian states, after Kerala (29.9%).
The national average was 10.2%. Persons aged 15-29 years are considered youth in the survey, while the unemployment rate is defined as the percentage of unemployed persons within the labour force or "economically active" population.
Likewise, the unemployment rate among the ‘educated persons’ in Nagaland surged from 8.9% in 2022-23 to 13.4% in 2023-24. This figure was second highest among states in India while the national average for the same category was 7.1%. However, it was 36.6% in 2019-20, before declining to 30.8 in 2020-21 and 15.6 in 2021-22.
The PLFS defined ‘educated persons’ as those who have attained the educational level of secondary and above, in the 15 years or above age group.
Among these cohorts, the highest unemployed were those with postgraduate qualifications and above, at 27%, followed closely by diploma or certificate holders (26.2%) and graduates (19.2%).
Meanwhile, the applicants in the live register of employment exchanges further offer some magnitude concerning the educated unemployment in Nagaland.
As of December 31, 2023, there were a total of 70,936 registered job seekers in Nagaland. Out of the total, 30,251 were graduates/degree holders and above. A special cell for "Physically Handicapped" (PWDs) had 1,089 applicants, taking the overall total to 72,025.
The PLFS is based on the usual status (principal status + subsidiary status), which includes individuals who were employed or actively seeking work for a substantial part of the past 365 days, as well as those who worked for at least 30 days during the reference period of the survey.
Therefore, the exclusion of seasonal unemployment cannot be ruled out.
AN UNSOLVABLE PROBLEM?
This scenario prompts a critical question: Can Nagaland overcome its persistent high unemployment rate? The answer lies somewhere between Yes and No, necessitating a deeper delve into the intricate socio-political and economic dynamics shaping Nagaland's unique unemployment paradox.
Political and Vote-Bank Dynamics: Unlike in many other states, where the issue of unemployment is often downplayed or ignored, Nagaland sees it frequently brought up by politicians and those in positions of power, often in a manner that seems to vaunt the problem rather than reflect a genuine desire to resolve it.
This could be attributed to the fact that a persistent unemployment issue allows political leaders to canvass for more funding or schemes from the central government.
Further, high unemployment also provides a convenient talking point during elections, with promises of job creation being used to sway voters.
However, these campaign promises rarely lead to meaningful, long-term employment policies for all citizens, although favouritism towards certain groups or individuals may occur.
In both cases, employment is not only an economic issue but also a political tool and fraught with dependency syndrome.
Cultural Ideal of government employment: There is a strong preference for government jobs in Nagaland, as they are often viewed as the benchmark for stable, respectable employment and a symbol of social status, rather than simply a form of public service.
However, with the sector nearly saturated and a greater emphasis on services over production, the gap between aspirations and available positions contributes to high levels of educated unemployment.
Paradoxically, while local aspirations often focus narrowly on government roles, Nagaland is increasingly perceived by outsiders as a land of opportunities, underscoring the stark contrast between local employment ideals and external job-seeking trends.
Pre-dominant informal sector: A significant 60.1% of Nagaland's employed population, as per PLFS 2023-24, are self-employed, with 51.5% as own-account workers and 8.6% as household enterprise helpers.
Only 31.9% of those employed were shown to be receiving regular wages/salaries, while 8% were casual workers. However, this was slightly better than the all-India average, where self-employed individuals accounted for 59.4%, and those receiving regular wages/salaries stood at 15.8%.
While such scenario could be indicative of entrepreneurial spirit, most of these enterprises are informal, with limited scalability and inadequate social security.
ARE TOURISM AND AGRI SECTORS THE ANSWER?
Given the current situation, tourism and the agriculture & allied sectors are often presented as potential solutions to address unemployment in Nagaland. However, existing data suggest otherwise.
For instance, in 2023, Nagaland recorded the second-lowest number of tourist arrivals among the North-Eastern states, according to figures presented in the Lok Sabha in July this year.
A total of 104.4 thousand (1.044 lakh) tourists visited Nagaland in 2023, comprising 99.7 thousand domestic tourist visits (DTVs) and 4,700 foreign tourist visits (FTVs). In terms of FTVs, Nagaland had the fifth-highest footfall in the North-East.
However, the bulk of Nagaland’s tourist footfall is recorded during the State’s annual premier Hornbill Festival, held from December 1–10. As per official data, the 2023 edition pulled in 1.54 lakh visitors, comprising of 2,108 foreigners, 37,089 domestic tourists, and 114,860 locals.
This highlights that most of Nagaland’s domestic and foreign tourist visits are concentrated around a single event, with negligible tourist presence throughout the rest of the year, raises questions about the sustainability of the tourism sector as a long-term solution to unemployment.
Meanwhile, according to the Nagaland Economic Survey 2023-2024, agriculture remains the cornerstone of the state's economy, with over 60% of the population engaged in agricultural activities.
However, the agriculture and allied sectors remain at a subsistence level and have yet to become a driving force for economic growth.
Consider the example of registration on the E-Shram portal, a centralised database for Unorganised Workers (UWs) aimed at facilitating the implementation of social security services for them, among other benefits.
A UW is defined as "any worker who is a home-based worker, self-employed, or a wage worker in the unorganised sector (establishments/units with fewer than 10 workers), as well as workers in the organised sector who are not members of ESIC, EPFO, or government employees."
As of November 27, data from the E-Shram Dashboard shows that out of 2,31,334 registrations from Nagaland, 1,36,449, or nearly 60%, were involved in the agriculture sector.
While the portal has stopped providing data on the income slabs of applicants, December 2021 figures reveal that nearly 92.32% of those registered at that time were earning Rs 10,000 or less per month, indicating the low income levels of these workers.
The data is unlikely to have changed significantly since then, although the number of registrations has increased. While Nagaland’s status at 94.34% was slightly better than the national average, this still suggests that most unorganised workers, predominantly in agriculture, remain at a subsistence level.
WAY FORWARD
Insulation from seasonal cycles: While Tourism could be potential a job creator, its seasonal focus limits its capacity as a stable employment sector and efforts should aim to expand tour- ism opportunities year-round
A similar gap exists in agriculture, which remains largely untapped despite Nagaland's rich natural resources and agro-climatic suitability. Targeted in- vestment in agriculture and allied activities can create jobs and foster economic resilience.
Beyond Government Jobs: Community and educational campaigns that highlight the value of diverse employment options can help shift the societal focus on government jobs.
Tailored polices: Effective government policies to Nagaland's unique needs are essential for fostering employment, not vote bank, scheme or central fund-centric polices. These policies should focus on incentivising sectors with high growth potential. Regular pol- icy reviews, based on real-time feedback from stakeholders, would ensure that policies remain relevant and adaptive.
Self-employment to sustainable entrepreneurship: The entrepreneurial spirit seen in small enterprises could be leveraged to create a thriving small and medium enterprise (SME) ecosystem with proper support. Converting this potential into a sustainable employment model will require dedicated policy intervention.
Accountability: A transparent approach to job creation, bolstered by accountability mechanisms, is essential to prevent employment issues from becoming a perpetual rhetorical issue. Good governance practices and citizen engagement are crucial for sustainable employment initiatives. Clear metrics and regular reporting on employment schemes can prevent misuse of resources and ensure that programmes deliver measurable results.
Building the backbone: A robust infrastructure is the cornerstone of economic growth. Investing in connectivity, both physical and digital, as well as reliable and affordable power supply will unlock the potential of every region in Nagaland.
Skill Up, Level Up: By equipping the youth and the workforce with the right skills, Nagaland can position itself as a hub for emerging industries. Tailored skill development programmes will ensure that graduates are job-ready and contribute to the state's economic prosperity.
