Central govt survey shows urban unemployment drops to record low of 6.8% in March quarter
The latest figures from the Periodic Labour Force Survey indicate that the rate of unemployment in Indian cities is the lowest since the survey’s initiation in 2018-19
PremiumNew Delhi: India’s urban unemployment rate reached a historic low of 6.8% in the first quarter of 2023, down from 7.2% in the previous quarter, according to data released by the Ministry of Statistics and Programme Implementation on Monday.
The latest figures from the Periodic Labour Force Survey (PLFS) indicate that the rate of unemployment in Indian cities is the lowest since the survey’s initiation in 2018-19. The PLFS, which publishes quarterly data for urban areas, measures unemployment in terms of the Current Weekly Status.
The unemployment rate among men stood at 6.0%, while for women it was 9.2%. In the previous quarter, the rates were 6.5% for men and 9.6% for women.
The PLFS report also revealed a slight increase in female labour force participation, with the figure rising to 22.7% in Q4 FY23, up from 22.3% in the previous quarter. Male labour force participation remained high at 73.5%.
Moreover, the worker-population ratio (WPR) showed a marginal improvement compared to the previous quarter. In urban areas, the WPR for individuals aged 15 and above reached 45.2% in January-March 2023, up from 44.7% in Q3. Among men, the WPR was 45.2%, while among women it stood at 20.6%. In the third quarter, the respective figures were 68.6% and 20.2%.
The National Sample Survey Office (NSSO) introduced the PLFS in April 2017. The survey provides quarterly bulletins with estimates of labour force indicators, including the unemployment rate, Worker Population Ratio (WPR), Labour Force Participation Rate (LFPR), and the distribution of workers by employment status and industry in the Current Weekly Status.
Unemployed persons in the Current Weekly Status provide an average representation of unemployment during a short seven-day period within the survey timeframe.
According to the CWS approach, individuals are classified as unemployed if they have not worked for even one hour during the week but have actively sought employment or were available for work for at least one hour during that period.
The Labour Force, as per the Current Weekly Status, refers to the average number of employed or unemployed individuals in the week preceding the survey date. The Labour Force Participation Rate (LFPR) represents the percentage of the population in the labour force.
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