Article Title

Author Full Name; Anshu Bhardwaj; Pradeep Thory

doi:10.63960/sp.2026.xxxx

Authors

Anshu Bhardwaj Department of Economics, University of Rajasthan, Jaipur, Rajasthan, India Author
Pradeep Thory Department of Economics, University of Rajasthan, Jaipur, Rajasthan, India Author

https://doi.org/10.63960/SIJMDS-2025-2479

Keywords:

India, GDP, Growth, Labour Force Participation, Unemployment, Economic Development, Skill Mismatch, Employment Policy, Gender Disparity, Jobless

Abstract

This paper has analysed the dynamic associations between GDP growth and the rates of urban unemployment and urban labour participation rate (LFPR) in the urban labour markets of India. The analysis utilised the secondary data of the Indian labour force survey which included Maximum Likelihood estimation under a structural equation modelling approach to demonstrate that the economic growth was associated with low urban unemployment, and unemployment was negatively related to participation in the labour force. These results underscored the role of macroeconomic growth in absorbing labour but high unemployment will deter people to involve themselves in active work, particularly in the more complicated urban environment. The paper combined stringent econometric methods to measure and confirm such interactions putting the findings in the wider context of the labour market issues in India which include skill gaps, informal sector dominance, and the gendered nature of India labour markets. Through critical examination of these essential variables, the study adds value to the study of labour market friction associated with economic development of cities and workforce participation.

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Author Biographies

Anshu Bhardwaj, Department of Economics, University of Rajasthan, Jaipur, Rajasthan, India

Dr. Anshu Bhardwaj is an Associate Professor in the Department of Economics at the University of Rajasthan, Jaipur. She currently serves as the Director and Nodal Officer for the prestigious NITI Aayog Chair (Rajasthan Institute for Transformation and Innovation). With extensive experience in academic research and policy analysis, her work focuses on macroeconomic development, regional economics, and public policy. She has guided numerous research scholars and published extensively in leading national and international economic journals.

Competing Interests:
There are no conflicts of interest to declare pertaining to this research. The analysis and interpretations presented are solely those of the authors, with no financial or personal relationships that could influence the work reported.
Pradeep Thory, Department of Economics, University of Rajasthan, Jaipur, Rajasthan, India

Pradeep Thory is a Research Scholar and Junior Research Fellow (JRF) in the Department of Economics at the University of Rajasthan, Jaipur. His research interests lie in applied macroeconomics, labor markets, and empirical data analysis. He has co-authored notable studies examining labor force participation, gross domestic product (GDP) dynamics, and urban unemployment trends in India.

Competing Interests:
There are no conflicts of interest to declare pertaining to this research. The analysis and interpretations presented are solely those of the authors, with no financial or personal relationships that could influence the work reported.

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Macroeconomic Growth and Labour Market Dynamics: An Empirical Analysis of GDP, Labour Force Participation, and Unemployment

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