India’s Unemployment Rate Stays Unchanged
Why in the News?
- The Periodic Labour Force Survey (PLFS) from July 2023 to June 2024 shows that India’s unemployment rate (UR) remains unchanged at 3.2%, similar to the previous year.
- Despite a slight increase in agricultural workforce participation, manufacturing employment shows no growth.
Workforce Participation Increases:
- The Labour Force Participation Rate (LFPR) rose in rural areas from 50.7% in 2017-18 to 63.7% in 2023-24 and in urban areas from 47.6% to 52% during the same period.
- LFPR for males increased from 75.8% to 78.8%, while for females, it grew significantly from 23.3% to 41.7%.
- Muslim women’s participation rose from 15% to 21.4%, while Hindu women’s LFPR grew from 26.1% to 33.3%.
Grim Employment Outlook:
- Experts, including economist Santosh Mehrotra, indicate the employment situation is grim, with no significant improvement in youth or overall unemployment.
- The rise in agricultural workers suggests an increase in unpaid family labour, counted as employment by PLFS.
- The manufacturing sector’s contribution to employment remains low at 1.4%, while the construction sector, although revived, shows no significant growth.
PLFS Overview and Objectives:
- Launched in 2017 to estimate key employment and unemployment indicators.
- Objectives:
- Estimate employment/unemployment indicators in 3-month intervals for urban areas in Current Weekly Status (CWS).
- Estimate annual indicators in both Usual Status and CWS for rural and urban areas.
- Key Indicators:
- Worker Population Ratio (WPR): Percentage of employed persons in the population.
- Labour Force Participation Rate (LFPR): Percentage of people working/seeking work in the population.
- Unemployment Rate (UR): Percentage of unemployed in the labour force.
PLFS Key Findings 2023-24:
- Labour Force Participation Rate (LFPR):
- Total: 1% (Increase from 57.9%)
- Rural:7% (Increase from 60.8%)
- Urban:0% (Increase from 50.4%)
- Male: 8% (Increase from 78.5%)
- Female:7% (Increase from 37.0%)
- Worker Population Ratio (WPR):
- Total: 2% (Increase from 56.0%)
- Unemployment Rate (UR):
- Total: 2% (Unchanged from 2022-23)
- Trend: Increase in workforce participation, especially among women, with unemployment rate remaining steady.
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