India’s Urban Unemployment Declines to 6.5% in Q4 2023 – PLFS Quarterly Bulletin

New Delhi:  The Periodic Labour Force Survey (PLFS) for the quarter October – December 2023 reveals positive trends in key employment and unemployment indicators for urban areas in India. The latest Quarterly Bulletin, the twenty-first in the series, provides insights into the labour force dynamics, with notable improvements in various metrics.

According to the report, the unemployment rate in urban areas witnessed a decline from 7.2% in October – December 2022 to 6.5% in the same period of 2023 for individuals aged 15 years and above. This decrease in the unemployment rate reflects a positive shift in the employment scenario within urban centers.

The Labour Force Participation Rate (LFPR) in urban areas demonstrated an upward trajectory, rising from 48.2% to 49.9% during October – December 2022 to October – December 2023 for individuals aged 15 years and above. This suggests a growing engagement of the urban population in the labor force.

A particularly encouraging trend is the increase in the Female Labour Force Participation Rate (LFPR) in urban areas, which rose from 22.3% to 25.0% during the same period. This reflects an overall positive trend in LFPR, emphasizing the inclusion of women in the urban workforce.

The Worker Population Ratio (WPR) also exhibited an increasing trend, rising from 44.7% in October – December 2022 to 46.6% in October – December 2023 for individuals aged 15 years and above. This signifies a higher percentage of employed individuals in the population, contributing to economic activity.

The PLFS was initiated by the National Sample Survey Office (NSSO) in April 2017, aiming to provide more frequent and detailed labor force data. The survey has a dual objective: to estimate key employment and unemployment indicators for urban areas on a quarterly basis and to provide annual estimates for both rural and urban areas.

The survey follows a rotational panel sampling design in urban areas, involving four visits to each selected household. The recent Quarterly Bulletin is based on data collected during the period October – December 2023, with timely completion of fieldwork for all samples.

At the national level, the survey covered 5,697 First Stage Sampling Units (FSUs) in urban areas during the quarter, surveying 44,544 households and 1,69,209 individuals.

The PLFS Quarterly Bulletin is instrumental in understanding the dynamics of the labor market and gauging the effectiveness of employment policies. The positive trends observed in the latest report underscore the resilience and adaptability of the urban workforce in India, providing optimism for sustained economic growth.

(Based on a press release from Ministry of Statistics & Programme Implementation)