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.

Periodic Labour Force Survey (PLES)

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.

     Associated Article:

    https://universalinstitutions.com/analyzing-income-inequality-in-india/ons.com/analyzing-income-inequality-in-india/