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Periodic Labour Survey Report: India’s Urban Unemployment Rate Steady At 6.6%; Marginal Decline From Previous Quarter

India's unemployment rate in urban areas, according to the Periodic Labour Force Survey report, remained unchanged at 6.6%.

Periodic Labour Survey Report: India’s Urban Unemployment Rate Steady At 6.6%; Marginal Decline From Previous Quarter

India’s unemployment rate in urban areas for individuals aged 15 years and above remained unchanged at 6.6% during the April–June 2024 quarter, consistent with the same period in the previous year, according to the latest data from the government’s Periodic Labour Force Survey (PLFS) released on Friday.

However, this rate represents a slight improvement compared to the preceding quarter, which recorded a joblessness rate of 6.7% during January–March 2024, marking a four-quarter high. This marginal decline in unemployment signals a potential stabilization in the urban job market as the country navigates economic challenges.

Periodic Labor Force Survey Data

The PLFS data also revealed that the unemployment rate among the key demographic of 15-29-year-olds, which represents the youth segment, stood at 16.8% in the first quarter of the current fiscal year. This is a slight decrease from the 17% recorded in the previous quarter, indicating a gradual improvement in job opportunities for the younger population.

Gender disparities in employment remain evident, with the survey highlighting that men are more likely to secure jobs than women. The unemployment rate among females aged 15 years and older was 9% during the April–June quarter, compared to 5.8% for men. This disparity underscores ongoing challenges in achieving gender parity in the workforce.

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Launched in 2017, the PLFS serves as a crucial tool for assessing labor market dynamics in India, a country with a rapidly expanding job-seeking population. The survey provides quarterly data on key labor indicators, albeit with some delay, and is instrumental in informing policy decisions related to employment.

India’s Economic Survey

India’s Economic Survey 2023–24 emphasized the need for the country to create 7.85 million non-farm jobs annually until 2030 to accommodate its growing workforce. This target highlights the significant demand for job creation to maintain economic stability and growth.

The PLFS measures employment using the “current weekly status” (CWS) approach, where a person is considered employed if they engaged in any economic activity during the week preceding the survey. This method allows for a more immediate assessment of employment trends, particularly in urban areas.

The survey also reported an increase in the labor force participation rate (LFPR) in urban areas, rising from 48.8% in April–June 2023 to 50.1% in April–June 2024. The LFPR is a critical indicator that reflects the proportion of people either working or actively seeking work, providing a clearer picture of the labor market’s overall health.

Additionally, the worker-to-population ratio (WPR) in urban areas for those aged 15 years and above increased from 45.5% in April–June 2023 to 46.8% in April–June 2024. The WPR measures the percentage of employed individuals within the total population, offering insights into the employment rate relative to the population size.

The marginal improvement in the unemployment rate during the April–June 2024 quarter was primarily driven by a decrease in male unemployment, according to data released by the Ministry of Statistics and Programme Implementation.


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