india-s-unemployment-rate-dips-to-3-1-in-2023-lowest-in-3-years-nso-data

India has witnessed a significant drop in its unemployment rate to 3.1% in 2023, marking its lowest level in the past three years, according to data released by the National Sample Survey Organisation (NSSO) under the Ministry of Statistics and Programme Implementation.

The Periodic Labour Force Survey (PLFS) for the calendar year 2023 indicates a positive trend, showcasing a decline from 3.6% in 2022 and 4.2% in 2021.

The data reveals a substantial recovery in the employment scenario post the impact of the Covid-19 pandemic, with increased economic activity following the lifting of lockdowns by the Central and State governments. The unemployment rate, defined as the percentage of unemployed individuals in the labour force, reflects this encouraging trend.

The survey highlights a notable improvement in various demographic segments. Among females, the unemployment rate dropped to 3% in 2023 from 3.3% in 2022 and 3.4% in 2021. Similarly, for males, it decreased to 3.2% in 2023 from 3.7% in 2022 and 4.5% in 2021.

Urban areas witnessed a reduction to 5.2% in 2023 from 5.7% in 2022 and 6.5% in 2021, while rural areas experienced a decrease to 2.4% in 2023 from 2.8% in 2022 and 3.3% in 2021.

The Labour Force Participation Rate (LFPR) in Current Weekly Status (CWS) for individuals aged 15 and above in urban areas rose to 56.2% in 2023, indicating an upward trajectory from 52.8% in 2022 and 51.8% in 2021.

LFPR represents the portion of the population actively involved in economic activities, suggesting increased workforce participation.

This positive employment data aligns with recent reports indicating India’s robust economic growth, which surged to 8.4% in the third quarter of 2023-24. Sectors such as manufacturing, mining & quarrying, and construction have played a pivotal role in driving this growth, as per data released by the National Statistical Office (NSO).

The NSO’s second advance estimate projects the country’s growth at 7.6% for the entire fiscal year 2023-24, surpassing the initial projection of 7.3% released in January 2024.