Unemployment in Urban India

The Periodic Labour Force Survey (PLFS), released by the Ministry of Statistics and Programme Implementation, reveals key insights into the unemployment scenario in urban India for the period October to December 2024.

Major Takeaways:

• Overall Unemployment Rate:
  • National Unemployment Rate (Urban areas): 4% for people aged 15 years and above.
    • Male Unemployment Rate: 8%.
    • Female Unemployment Rate: 1%.
• Comparison with Previous Periods:
  • October-December 2023: The unemployment rate was 5%.
  • July-September 2024: The unemployment rate stood at 4%.
  • Female Unemployment Rate in 2023: 6%.
• State-wise Unemployment:
  • Highest Unemployment Rate: Himachal Pradesh with 4%.
  • Lowest Unemployment Rate: Gujarat with 0%.
  • Female Unemployment Rate:
    • Highest: Himachal Pradesh (24%).
    • Lowest: Delhi (3%).
• Labour Force Participation Rate (LFPR):
  • LFPR for all people (aged 15 years and above): 39.6%. This shows an increase from 39.2% in the same quarter last year.
  • LFPR for women: 20%, an increase of 0.1 percentage point from 19.9% last year. However, it decreased from the previous quarter's figure of 20.3%.
  • Lowest LFPR: Bihar, with 30.7% for all people and 9.9% for women.
• Worker Population Ratio (WPR):
  • WPR for urban areas (aged 15 years and above): Increased from 46.6% (October-December 2023) to 47.2% (October-December 2024).
  • Male WPR: Increased from 69.8% to 70.9% during the same period.
• Employment Status Categories: The workers are divided into three broad categories based on their employment status:
  • Self-employed: 9% of the workforce.
    • This category includes both own account workers and employers, as well as unpaid helpers in household enterprises.
  • Regular Wage/Salaried Employees: 4%.
  • Casual Labourers: 7%.
• Sector-wise Employment Distribution:
  • Agricultural Sector: 5% of the workforce.
  • Secondary Sector (including mining): 8%.
  • Tertiary Sector (including services): 7% of the workforce.

Key Observations and Concerns:

• Unemployment Trends: While the overall unemployment rate remained stable compared to last year, the female unemployment rate is still significantly higher than the male rate, and certain states like Himachal Pradesh are struggling with very high unemployment rates.
• Labour Force Participation: The LFPR has seen a slight increase, but it is still lower for women compared to men, and the lowest LFPR is observed in Bihar, showing regional disparities.
• Shift towards Services: The majority of workers are employed in the tertiary sector (services), with a small proportion in agriculture, which indicates the urban shift in the workforce.
• Ongoing Job Crisis: The employment data aligns with concerns regarding India's job crisis. The female unemployment rate continues to be a significant issue, highlighting the challenges women face in securing jobs in urban areas.