The Ministry of Statistics and Programme Implementation (MoSPI) announced on Monday that the unemployment rate in urban areas declined to 6.5% in the three months leading up to December, marking a notable improvement from the 7.2% recorded during the same period in 2022.
The latest findings, outlined in the Periodic Labour Force Survey (PLFS) Quarterly Bulletin, shed light on the evolving dynamics of India's urban labor market.
According to the report, the labor force participation rate (LFPR) in urban areas, representing the proportion of individuals actively engaged in or seeking employment, exhibited a positive trajectory, ascending from 48.2% to 49.9% over the course of the year. The surveyed individuals were all aged 15 years and above, providing a comprehensive overview of urban workforce dynamics.
In a breakdown of LFPR by gender, the data unveiled encouraging trends. The LFPR for males rose to 74.1%, up from 73.3%, while for females, it surged to 25% from 22.3%. This uptick underscores efforts to enhance female participation in the urban workforce, a crucial aspect of fostering inclusive and sustainable economic growth.
Furthermore, the worker-to-population ratio (WPR) in urban areas demonstrated a significant increase, reaching 46.6% during the October-December 2023 quarter, compared to 44.7% in the corresponding period of the previous year. The rise in WPR, which indicates the percentage of employed individuals in the population, is indicative of enhanced job opportunities and labor market vibrancy.
Breaking down the WPR by gender, the report revealed noteworthy advancements. The WPR for males climbed from 68.6% to 69.8%, while for females, it surged from 20.2% to 22.9%. These figures underscore strides towards gender parity in employment opportunities, a pivotal objective for promoting social inclusion and economic empowerment.
The survey methodology employed by MoSPI, utilizing a rotational panel sampling design in urban areas, ensures robust data collection and analysis. Each selected household is visited four times, facilitating comprehensive insights into urban labor market dynamics.
The decline in urban unemployment rates observed in the latest report corroborates previous trends documented by the PLFS Quarterly Bulletin.
In the July-September 2023 quarter, the urban unemployment rate dipped to 6.6%, accompanied by an increase in LFPR to 49.3%. Similarly, joblessness during the April-June 2023 quarter stood at 6.6%, down from 6.8% in the previous quarter.
Follow us
