Context: As per the latest Periodic Labour Force Survey (PLFS) report released by the Ministry of Statistics and Programme Implementation (MoSPI), the urban unemployment rate stood at 6.4% in Q3 FY25.
Relevance of the Topic: Prelims: Key Idea about trends in Unemployment.
Key Findings of the Report
- Overall Unemployment Rate (for individuals aged 15 and above) declined to 6.4% in the third quarter (Oct-Dec 2024) of the current financial year (FY25).
- Compared to 6.5% during the same period in 2023.
- Unchanged from 6.4% in July-Sept 2024 quarter of FY25.
- Labour Force Participation Rate (LFPR):
- Overall LFPR: 39.6% (up from 39.2% in Oct-Dec 2023)
- Women’s LFPR: Increased marginally to 20% from 19.9% in 2023, but down from 20.3% in the previous quarter.
- Lowest LFPR: Bihar
- Gender-wise Unemployment Rate:
- Men: 5.8%
- Women: 8.1% (down from 8.6% in Oct-Dec 2023)
- State-wise Unemployment:
- Highest: Himachal Pradesh - 10.4%
- Lowest: Gujarat - 3%
- State-wise Female Unemployment:
- Highest- Himachal Pradesh: 24%
- Lowest- Delhi: 1.3%
- Worker Population Ratio (WPR):
- Overall WPR (15+ years): 47.2% (up from 46.6% in Oct-Dec 2023)
- Male WPR: 70.9% (from 69.8% in the previous year)
- Employment Composition- by Employment type:
- Self-employed: 39.9%
- Regular wage/salaried employees: 49.4%
- Casual labourers: 10.7%
- Employment Composition- by Sector:
- Agriculture: 5.5%
- Secondary sector (including mining): 31.8%
- Tertiary sector (includes services sector): 62.7%
Related Key terms:
- Labour Force Participation Rate (LFPR): It represents the percentage of the population aged 15 and above that is either employed or actively seeking employment.
- Worker Population Ratio (WPR): WPR measures the percentage of employed individuals within the total population aged 15 years and above.
- Unemployment Rate (UR): It indicates the percentage of unemployed persons among those in the labour force.
- Regarding Activity Status:
- Principal Activity Status (PS): The primary activity in which a person is engaged in for a substantial period (during 365 days preceding the survey).
- Subsidiary Economic Activity Status (SS): Additional economic activities performed, apart from the usual primary activity, for at least 30 days in the 365-day period before the survey.
- Current Weekly Status (CWS): This status reflects a person's activities during the immediate past 7 days before the survey date.