India's unemployment rate hits six-year low, rural areas witness significant improvements: Report  

India's unemployment rate for individuals aged 15 and above reached a six-year low of 3.2 per cent during the period from July 2022 to June 2023, The Press Trust of India (PTI) reported. This data was reported in the Periodic Labour Force Survey Annual Report 2022-2023 released by the National Sample Survey Office. The unemployment rate is defined as the percentage of unemployed persons in the labour force.

The Periodic Labour Force Survey (PLFS) was launched by the NSSO in April 2017 to provide more frequent labour force data. In the most recent data, the unemployment rate (UR) in usual status for persons aged 15 years and above at the all-India level decreased to 3.2 per cent in 2022-23 from 4.1 per cent in 2021-22. The UR was 4.2 per cent in 2020-21, 4.8 per cent in 2019-20, 5.8 per cent in 2018-19, and 6 per cent in 2017-18, according to the PLFS data.

The survey distinguishes usual status, which determines a person's employment status based on the reference period of 365 days preceding the survey date.

The data revealed a notable decline in unemployment rates in both rural and urban areas. In rural regions, UR decreased from 5.3 per cent in 2017-18 to 2.4 per cent in 2022-23, while in urban areas, it decreased from 7.7 per cent to 5.4 per cent. The UR for males in India decreased from 6.1 per cent in 2017-18 to 3.3 per cent in 2022-23, with a corresponding decrease for females from 5.6 per cent to 2.9 per cent.

The survey also showed a significant increase in the Labour Force Participation Rate (LFPR) in usual status for individuals aged 15 and above, rising to 57.9 per cent from 49.8 per cent in 2017-18. LFPR is defined as the percentage of persons in the labour force—those working, seeking work, or available for work—in the population.

For rural areas, LFPR increased from 50.7 per cent in 2017-18 to 60.8 per cent in 2022-23, while for urban areas, it increased from 47.6 per cent to 50.4 per cent. The LFPR for males in India increased from 75.8 per cent in 2017-18 to 78.5 per cent in 2022-23, with a corresponding increase for females from 23.3 per cent to 37.0 per cent.

The Worker Population Ratio (WPR) in usual status for persons aged 15 and above also increased to 56 per cent in 2022-23 from 46.8 per cent in 2017-18. WPR is defined as the percentage of employed persons in the population.

For rural areas, WPR increased from 48.1 per cent in 2017-18 to 59.4 per cent in 2022-23, while for urban areas, it increased from 43.9 per cent to 47.7 per cent. The WPR for males in India increased from 71.2 per cent in 2017-18 to 76.0 per cent in 2022-23, and the corresponding increase in WPR for females was from 22.0 per cent to 35.9 per cent.

The Periodic Labour Force Survey collects data on a yearly basis. The recent data is based on the survey conducted from July 2022 to June 2023.

However, the report noted that fieldwork for collecting information in some areas could not be completed due to "disturbed field situations and unavailability of internet services."

(Inputs from PTI)

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