Urban Unemployment Rate Declines to 6.6% in April-June 2023, Government Survey

In a positive turn of events, the urban unemployment rate for individuals aged 15 years and above has witnessed a decline, dropping from 7.6% in April-June 2022 to 6.6% during the same period in 2023, as per data released by the National Sample Survey Office (NSSO).

The unemployment rate is calculated as the percentage of unemployed individuals within the labor force.

The surge in joblessness during April-June 2022 was primarily attributed to the profound impact of COVID-related restrictions across the country.

The 19th Periodic Labour Force Survey (PLFS) unveiled that the unemployment rate among individuals aged 15 years and above in urban areas stood at 7.6% during April-June 2022. Subsequently, in January-March 2023, this rate dipped slightly to 6.8%, followed by 7.2% in July-September 2022 and October-December 2022.

The data also revealed a decrease in the unemployment rate among females aged 15 years and above in urban areas. In April-June 2023, it registered at 9.1%, down from 9.5% during the same quarter a year ago. Similarly, in January-March 2023, it was 9.2%, October-December 2022 saw 9.6%, and July-September 2022 recorded 9.4%.

For males, the unemployment rate in urban areas exhibited a decline to 5.9% during April-June 2023, compared to 7.1% in the corresponding quarter the previous year. In the subsequent periods, it stood at 6.0% (January-March 2023), 6.5% (October-December 2022), and 6.6% (July-September 2022).

Moreover, the labor force participation rate in Current Weekly Status (CWS) for individuals aged 15 years and above in urban areas increased to 48.8% during April-June 2023, up from 47.5% in the same period a year ago. In the following quarters, it measured 48.5% (January-March 2023), 48.2% (October-December 2022), and 47.9% (July-September 2022).

The NSSO initiated the PLFS in April 2017, aiming to provide estimates of labor force indicators, including the unemployment rate, Worker Population Ratio (WPR), Labor Force Participation Rate (LFPR), distribution of workers by employment status, and industry of work in CWS.

These statistics offer valuable insights into the employment landscape, reflecting the average scenario of unemployment within a brief seven-day period during the survey window.

Under the CWS approach, an individual is classified as unemployed if they did not work for even a single hour throughout the week but actively sought or were available for employment for at least one hour during that timeframe.

Labor force, according to CWS, encompasses the number of individuals either employed or unemployed on average during the week leading up to the survey date.

LFPR is defined as the percentage of the population within the labor force.

In addition, the Worker Population Ratio (WPR) in CWS for individuals aged 15 years and above in urban areas reached 45.5% in April-June 2023, marking an increase from 43.9% in the same period a year ago. The subsequent quarters saw this ratio at 45.2% (January-March 2023), 44.7% (October-December 2022), and 44.5% (July-September 2022).

The most recent quarterly bulletin, the 19th in the series, covers data for the April-June 2023 quarter.

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