Urban Unemployment Rate Steady at 6.4% in Q3 FY25
The urban unemployment rate in India stood unchanged at 6.4% in the October-December quarter of FY25, according to the latest Periodic Labour Force Survey (PLFS) released by the Ministry of Statistics and Programme Implementation (MoSPI) on February 18, 2025. This follows a slight decline from 6.6% in Q1 FY25 to 6.4% in Q2 FY25, indicating a stable employment scenario in urban areas.
Despite the steady overall unemployment rate, the survey reveals shifts in gender-specific job trends, youth employment levels, and labor force participation. The data provides insights into urban labor market conditions and is critical for policymakers assessing employment patterns.
The improvement in female employment aligns with efforts to enhance workforce participation, but the gap between male and female employment remains significant.
Youth unemployment, a critical indicator for economic growth, saw a minor increase:
This slight increase reflects the difficulty in absorbing young professionals into the labor market despite overall employment stability.
The Labour Force Participation Rate (LFPR) in urban areas remained stable at 50.4% in Q3 FY25, but there were slight changes within gender groups:
While men’s participation improved, the dip in female LFPR highlights the need for policies encouraging women’s sustained employment.
The survey also analyzed employment types and sector-wise job shares:
A key positive trend was an increase in female regular employment, which rose to 54.8% in Q3 FY25 from 53.8% in Q2 FY25. However, male regular employment saw a slight decline from 47.9% to 47.7%.
The PLFS, launched in April 2017, provides quarterly updates on employment conditions in urban India. The latest report, the 25th in this series, offers crucial insights for policymakers, economists, and businesses. The urban job market has shown stability, but challenges remain, especially in youth employment and female workforce participation.
For a sustained improvement, experts suggest sectoral diversification, job creation strategies, and policies encouraging female employment. The government’s focus on skill development and industrial expansion will be key to ensuring long-term urban employment growth.
Key Aspect | Details |
---|---|
Why in News? | Urban unemployment rate remained steady at 6.4% in Q3 FY25 (Oct-Dec), as per PLFS data by MoSPI. |
Male Unemployment | Increased slightly to 5.8% from 5.7% in Q2 FY25. |
Female Unemployment | Improved to 8.1% from 8.4% in Q2 FY25. |
Youth Unemployment (15-29 years) | Increased to 16.1% from 15.8%, signaling job market challenges for young professionals. |
Labour Force Participation Rate (LFPR) | Unchanged at 50.4% overall. |
Male LFPR | Increased to 75.4% from 75%. |
Female LFPR | Decreased slightly to 25.2% from 25.5%. |
Employment Type Distribution | Self-Employed: 39.9%, Regular/Salaried: 49.4%, Casual Labour: 10.7%. |
Women in Regular Jobs | Increased to 54.8% from 53.8% in Q2 FY25. |
Manufacturing Jobs (Secondary Sector) | Declined to 31.8% from 32.3%. |
Services Sector Jobs (Tertiary Sector) | Increased to 62.7% from 62.3%, showing growth. |
Report Release Date | February 18, 2025. |
Data Source | Periodic Labour Force Survey (PLFS), Ministry of Statistics and Programme Implementation (MoSPI). |
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