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Unemployment slightly declines nationwide, reveals NSO survey

The latest Annual Report of the Periodic Labour Force Survey (PLFS), released by the National Statistical Office (NSO), shows a marginal improvement in labour force indicators across both rural and urban regions of the country. The data, based on the first visit of the PLFS conducted from January to December 2024, presents calendar year-wise estimates of labour market indicators under both Current Weekly Status (CWS) and Principal and Subsidiary Status (PS+SS).

According to the report, the Labour Force Participation Rate (LFPR) under the Current Weekly Status in urban areas increased for both men and women. Among urban males, LFPR rose from 74.3% in 2023 to 75.6% in 2024, while for females, it saw a modest rise from 25.5% to 25.8%. This led to an overall increase in urban LFPR from 50.3% to 51.0%. However, the all-India LFPR under CWS remained unchanged at 56.2%, indicating only slight variations across different categories.

Similarly, the Worker Population Ratio (WPR) in urban areas registered a small increase from 47.0% to 47.6%, suggesting some improvement in employment levels. At the national level, the overall WPR under CWS showed minimal change, rising marginally from 53.4% in 2023 to 53.5% in 2024.

Unemployment rates under the CWS showed mixed trends. In rural areas, the overall unemployment rate declined slightly from 4.3% to 4.2%. Both male and female unemployment rates in rural areas showed marginal reductions. In contrast, urban male unemployment increased from 6.0% to 6.1%, while female unemployment dropped from 8.9% to 8.2%, keeping the overall urban unemployment rate stable at 6.7%. The nationwide unemployment rate under CWS dropped slightly from 5.0% to 4.9%, suggesting minor improvements in employment opportunities.

One notable trend was the reduction in the percentage of unpaid helpers in household enterprises among rural females, which declined from 19.9% in 2023 to 18.1% in 2024. According to the report, this may have contributed to the slight decline in both LFPR and WPR in this group.

Under the Principal and Subsidiary Status (PS+SS), labour force participation rates remained largely stable. The overall LFPR declined marginally from 59.8% in 2023 to 59.6% in 2024. Similarly, the WPR under PS+SS also saw a slight decrease at the national level, from 58.0% to 57.7%, indicating a minor dip in employment despite steady participation levels.

Unemployment under PS+SS recorded a marginal increase nationwide, rising from 3.1% in 2023 to 3.2% in 2024. Although the change is minimal, it reflects slight variations in employment dynamics across regions.

The PLFS, launched by the NSO in April 2017, aims to provide more frequent labour force data. It generates quarterly estimates for urban areas under the Current Weekly Status and annual estimates for both urban and rural areas under both CWS and PS+SS.

For the 2024 calendar year estimates, data was collected from 12,749 First Stage Units (FSUs), including 6,982 villages and 5,767 urban blocks. A total of 1,01,957 households were surveyed — 55,846 in rural areas and 46,111 in urban areas — covering 4,15,549 individuals (2,40,492 in rural areas and 1,75,057 in urban areas).

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