India’s Urban Unemployment Rate Declines to 6.7% in March Quarter

The 22nd Periodic Labour Force Survey (PLFS) conducted by the National Sample Survey Office (NSSO) revealed that the unemployment rate among individuals aged 15 years and above in urban areas of India decreased to 6.7% in the January-March 2024 period. The survey offers insights into various labor force indicators, including unemployment rate, worker population ratio (WPR), and labor force participation rate (LFPR) based on the Current Weekly Status (CWS) approach.

Unemployment Rate Trends

• The unemployment rate for individuals aged 15 years and above in urban areas saw a slight decline to 6.7% in January-March 2024 from 6.8% a year earlier.
• Among females aged 15 years and above, the unemployment rate dropped to 8.5% in January-March 2024 compared to 9.2% in the same quarter of the previous year.
• Conversely, among males, the unemployment rate increased marginally to 6.1% in January-March 2024, up from 6% in the corresponding period of the previous year.

Labour Force Participation Rate

• The LFPR in urban areas for individuals aged 15 years and above rose to 50.2% in January-March 2024, marking an increase from 48.5% in the same period a year ago.

Methodology and Definitions

• The PLFS, initiated in April 2017, provides quarterly estimates of labor force indicators.
• Utilizing the Current Weekly Status (CWS) approach, the survey identifies unemployed individuals as those who did not work for even one hour during the week but were available for work for at least one hour.
• The LFPR is calculated as the percentage of the population in the labor force, comprising both employed and unemployed individuals.

By offering a comprehensive understanding of urban unemployment dynamics, the PLFS aids policymakers in formulating targeted strategies to address labor market challenges in India.