Slight Dip in India's Unemployment Rate: A Mixed Bag of Trends

India's unemployment rate decreased to 4.9% in 2024 from 5% in 2023, according to the Periodic Labour Force Survey. Urban female unemployment fell, while urban male unemployment slightly rose. Rural areas saw minor improvements in employment. Worker and labor force participation ratios showed mixed trends across various sectors.

According to the Periodic Labour Force Survey (PLFS) released this week, India's unemployment rate fell to 4.9% in 2024 from 5% the previous year.

The Ministry of Statistics and Programme Implementation noted a modest decline in rural unemployment, bringing it to 4.2% for both genders. Urban male unemployment, however, saw a slight rise, climbing from 6.0% to 6.1%, though female rates decreased significantly to 8.2% from 8.9%. The overall urban unemployment rate remained steady at 6.7%.

Despite these minor fluctuations, the national Worker Population Ratio (WPR) and Labour Force Participation Rate (LFPR) displayed overall stability, indicating consistent employment opportunities. Notably, the percentage of unpaid helpers in household enterprises, particularly among rural females, declined. Trends varied across sectors, with urban areas seeing slight increases in the LFPR but a minor drop in the WPR.

(With inputs from agencies.)