The latest Periodic Labour Force Survey (PLFS) data released by the National Statistical Office indicates a continued improvement in India’s urban labour markets. The urban jobless rate for Q3FY24 dropped to 6.5%, showcasing a marginal decrease from the previous quarter and marking a significant decline from the peak observed during the Covid-affected period in FY22.
Trends in Unemployment Rate
- Urban jobless rate declines to 6.5% from 6.6% in the preceding quarter.
- Represents a steady decline from the peak of 12.6% recorded in the Covid-affected quarter of FY22.
- Lowest unemployment rate recorded in five years since the initiation of quarterly urban jobless rate releases in December 2018.
- Unemployment rate among women remains stagnant at 8.6%, while among men it decreases to 5.8% from 6% in the previous quarter.
- Unemployment rate for the young (15-29) decreases sharply to 16.5% in Q3 from 17.3% in Q2, reflecting the robustness of the labour market for first-time job seekers.
Labour Force Participation Rate (LFPR) Trends
- LFPR sees a marginal increase to 49.9% in the December quarter from 49.3% in the September quarter.
- Both men and women show increased enthusiasm for work, with their LFPR increasing to 74.1% and 25% respectively.
Employment Trends
- Salaried jobs witness an increase in share to 47.3% for men and 53% for women in Q3 from the previous quarter.
- Self-employment, including unpaid helpers in household enterprises or owning an enterprise, increases to 40.6% in Q3 from 40.4% in Q2.
- Share of workers in the tertiary sector rises to 62% in Q3 from 61.5% in the previous quarter.
- Share of workers in the secondary (manufacturing) sector declines to 32.1% from 32.4% during the same period.
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