Unemployment Rate Dips to 6.4% in December Quarter According to NSSO Survey

The unemployment rate for individuals aged 15 and above in urban areas slightly decreased to 6.4% during the October-December quarter of the current fiscal year, as per the National Sample Survey Office (NSSO). This figure represents a minor drop from the previous quarter's 6.5%. The unemployment rate measures the proportion of unemployed individuals within the labour force.

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In the July-September quarter of FY25, the unemployment rate for those aged 15 and above in urban areas was also recorded at 6.4%, according to the 25th Periodic Labour Force Survey (PLFS). This indicates no change when compared sequentially. The survey provides insights into various labour force indicators, including unemployment rates and worker population ratios.

Unemployment Trends Among Genders

For females aged 15 and above in urban areas, unemployment decreased to 8.1% in October-December 2024, down from 8.6% in the same period a year earlier. In contrast, the rate was slightly higher at 8.4% during July-September 2024. Meanwhile, for males, the unemployment rate remained stable at 5.8% in October-December 2024, unchanged from the same quarter a year ago. It was marginally lower at 5.7% in July-September 2024.

The labour force participation rate (LFPR) in urban areas for individuals aged 15 and above rose to 50.4% in October-December from 49.9% a year earlier. This rate was consistent with the July-September period of 2024. The labour force includes both employed and unemployed individuals who are willing to work.

Labour Force Participation and Worker Population Ratio

The PLFS, initiated by NSSO in April 2017, releases quarterly bulletins providing estimates on various labour force metrics such as unemployment rates and LFPR. The worker population ratio (WPR) for males aged 15 and above in urban areas increased from 69.8% in October-December 2023 to 70.9% during the same period in 2024.

The CWS approach considers a person unemployed if they did not work even for an hour on any day during a week but were available or seeking work for at least an hour during that time. This method offers an average view of unemployment over a short span of seven days within the survey period.

The labour force, as defined by CWS, comprises individuals either employed or unemployed on average during the week preceding the survey date. The LFPR is calculated as the percentage of the population that is part of this labour force.

The PLFS provides essential data on employment trends, helping policymakers understand shifts in job markets across urban areas. These insights are crucial for developing strategies to address employment challenges effectively.