India’s Unemployment Rate Drops to 6.4% in Q2

In the July-September 2024 quarter, India’s urban unemployment rate decreased to 6.4%, marking the lowest level observed in recent years. The rate has dropped from 6.6% in the previous quarter and remains consistent with the rate recorded in the same period last year. This improvement reflects positive trends in employment, particularly in urban areas, indicating progress in job creation and labor force participation.

Key Highlights

Urban Unemployment Rate

• 6.4% in the July-September 2024 quarter, down from 6.6% in the previous quarter.
• This marks the lowest unemployment rate recorded in recent times.
• The rate was 6.6% in the same quarter of the previous year (2023).

Unemployment Among Men and Women

• Men’s Unemployment: Decreased to 5.7% (from 5.8% in April-June 2024).
• Women’s Unemployment: Decreased to 8.4% (from 9% in April-June 2024).

Labour Force Participation Rate (LFPR)

• LFPR increased to 50.4% in the July-September 2024 quarter (up from 50.1% in the previous quarter).
• Women’s LFPR remained steady at 25.5% (slightly up from 25.2% in the previous quarter).

Worker Population Rate (WPR) in Urban Areas

• WPR: 47.2% in the July-September 2024 quarter for those aged 15 and above.
• For men, the WPR was 70.7%, while for women, it was 23.4%.

Definitions

• Unemployment Rate: The percentage of unemployed people in the labor force.
• Labour Force Participation Rate (LFPR): The percentage of the working-age population that is either working or actively seeking work.
• Worker Population Rate (WPR): The percentage of the total population (aged 15 years and above) that is employed or actively looking for work.

Insights

• Improvement in Employment Trends: The decline in the urban unemployment rate and the steady participation of women in the labor force are encouraging signs of progress in employment.
• Labor Market Reforms Needed: While there is an increase in the labor force participation rate, women’s participation remains significantly lower than men’s, indicating areas for potential growth and support through policy and skill-building initiatives.