Unemployment Rate Dips Marginally to 4.9% in 2024

According to the latest Periodic Labour Force Survey (PLFS) released by the Ministry of Statistics and Programme Implementation, India’s unemployment rate among persons aged 15 years and above dipped slightly from 5.0% in 2023 to 4.9% in 2024. The report suggests subtle improvements in employment opportunities, though sector-wise and gender-wise disparities continue. Urban and rural areas showed mixed trends in employment, labour force participation, and worker population ratios, reflecting the complex dynamics of India’s labour market.

Key Highlights from PLFS 2024

Unemployment Trends (15 years and above)

• All-India unemployment rate: Slight dip from 5.0% (2023) to 4.9% (2024).

Rural unemployment

• Decreased from 4.3% to 4.2%.
• Both male and female unemployment saw marginal reductions.

Urban unemployment

• Male unemployment increased from 6.0% to 6.1%.
• Female unemployment decreased from 8.9% to 8.2%.
• Overall urban unemployment rate remained stable at 6.7%.

Labour Force Participation Rate (LFPR)

• LFPR (15+ years, PS+SS) at national level slightly declined from 59.8% to 59.6%.

Urban areas

• Male LFPR increased from 74.3% to 75.6%.
• Female LFPR increased marginally from 25.5% to 25.8%.
• Overall urban LFPR rose from 50.3% to 51.0%.
• Overall LFPR remained constant at 56.2%, with minor category-wise variations.

Worker Population Ratio (WPR)

• All-India WPR saw a marginal decline from 58.0% to 57.7%.
• Urban WPR improved slightly from 47.0% to 47.6%.
• Drop in rural female WPR possibly linked to decline in unpaid female helpers in household enterprises:
• Share of female helpers decreased from 19.9% to 18.1%.

Employment Opportunities

• Slight improvements seen across categories, with a stable to positive hiring sentiment.
• Decline in unpaid household work may indicate a shift to more formal or productive roles, especially in rural regions.

Additional Observations

• Despite a dip in unemployment, joblessness among minorities increased during 2023–24 (July–June).
• Hiring in IT and manufacturing sectors expected to rebound in early 2025.
• Youth employability remains a concern, especially in the backdrop of AI-driven disruptions in various sectors.