The latest Periodic Labour Force Survey (PLFS) conducted by the National Sample Survey Office (NSSO) in India has reported a decrease in the country’s unemployment rate during the period between April and June 2023. This survey, which collected data from thousands of sampling units and individuals, provides insights into the labor force dynamics and employment trends in India.
Key Findings:
- Unemployment Rate (UR) Decline: The PLFS indicates a decreasing trend in the unemployment rate for individuals aged 15 years and above. In urban areas, the UR decreased from 7.6% in April-June 2022 to 6.6% in April-June 2023. Specifically, the UR for males decreased from 7.1% to 5.9%, and for females, it decreased from 9.5% to 9.1% during this period.
- Labor Force Participation Rate (LFPR) Increase: The LFPR in urban areas also showed improvement, rising from 47.5% in April-June 2022 to 48.8% in April-June 2023 for individuals aged 15 years and above. The LFPR for males remained relatively stable at around 73.5%, while for females, it increased from 20.9% to 23.2%.
- Worker-Population Ratio (WPR) Growth: The WPR in urban areas increased from 43.9% in April-June 2022 to 45.5% in the same months in 2023 for individuals aged 15 years and above. For males, it grew from 68.3% to 69.2%, and for females, it increased from 18.9% to 21.1% during this period.
Comparison to Pre-Pandemic Period:
The PLFS report also highlights improvements in key labor market indicators in urban areas compared to the pre-pandemic period (April-June 2018 to October-December 2019). These comparisons demonstrate positive trends:
- LFPR: During the pre-pandemic period, LFPR ranged from 46.2% to 47.8%, while in the latest report, it reached 48.8%.
- WPR: Before the pandemic, WPR ranged from 41.8% to 44.1%, and in the recent survey, it stood at 45.5%.
- UR: The unemployment rate in the pre-pandemic period fluctuated between 7.8% and 9.7%, whereas in the latest survey, it decreased to 6.6%. This rate is reported to be lower than the unemployment rates observed in the quarters covered in the pre-pandemic period.