Unemployment rate declines to 6.7% in March quarter: Survey

The unemployment rate for individuals aged 15 and above in urban areas declined to 6.7% in the January-March 2024 period from 6.8% a year ago, according to the National Sample Survey Office (NSSO). This data is part of the 22nd Periodic Labour Force Survey (PLFS).

Unemployement rate

Unemployment rate, defined as the percentage of unemployed people in the labor force, saw minor fluctuations over the past year. It was 6.8% in the March quarter of FY23, 6.6% in April-June, 6.6% in July-September, and 6.5% in October-December 2023.

The latest survey highlighted a decline in the unemployment rate for females (aged 15 and above) in urban areas to 8.5% in January-March 2024 from 9.2% in the same period the previous year. Female unemployment was 9.1% in April-June 2023, 8.6% in both July-September and October-December 2023.

Conversely, the male unemployment rate in urban areas slightly increased to 6.1% in January-March 2024 from 6% a year ago. It was 5.9% in April-June 2023, 6% in July-September, and 5.8% in October-December 2023.

The labor force participation rate (LFPR) in Current Weekly Status (CWS) for urban areas rose to 50.2% in January-March 2024 from 48.5% a year earlier. The LFPR was 48.8% in April-June 2023, 49.3% in July-September, and 49.2% in October-December 2023.

The labor force comprises individuals who supply or offer to supply labor for economic activities, including both the employed and unemployed. According to CWS, unemployment estimates reflect an average picture over a week during the survey period. A person is considered unemployed if they did not work for at least one hour on any day of the week but were available for or seeking work.

The NSSO launched the PLFS in April 2017 to provide quarterly estimates of labor force indicators such as the unemployment rate, worker population ratio (WPR), LFPR, and distribution of workers by employment status and industry. This approach offers a snapshot of the labor market dynamics over a short period, helping to inform economic and employment policies.

Also Watch: Youth unemployment crisis: 83% of jobless Indians are young adults, says report