Unemployment rate declined to the lowest level in 2023

News Excerpt:

As per the new data released by the National Sample Survey Office (NSSO), India’s unemployment rate has dropped to 3.1% in 2023 from 3.6% in 2022.

More about the news:

  • The data was part of the employment-unemployment indicators report (Periodic Labour Force Survey) released by the National Sample Survey Office (NSSO).
  • Usually, the annual Periodic Labour Force Survey by the NSO collects data related to employment and unemployment status in the country between July and June.
  • In the latest NSSO report, the labour force indicators for a calendar year have been obtained by combining the data of four quarters of the calendar year

Findings of the survey:

  • A significant reason for the decline in the unemployment rate was the decline in urban unemployment. 
    • Urban unemployment declined to 5.2% in 2023 compared with 5.9% in the previous year
    • Rural unemployment was down 2.4% from 2.8% earlier.
  • The latest survey also showed that the labour force participation rate (LFPR) increased significantly to 59.8% in 2023 from 56.1% in 2022 at the national level.
  • The rural LFPR stood at 63.4% in 2023, significantly up from 58.5% in 2022, whereas its urban LFPR rose to 51.4% from 50% in the corresponding period.

Male-Female Labour Force Participation:

  • The male-female gap in unemployment increased according to annual PLFS.
    • Female unemployment declined slower than male unemployment.
    • Despite female labour force participation rising to 41.3% in 2023 from 33.9% earlier, unemployment decreased to 3% from 3.3% earlier. 
    • In contrast, male unemployment declined to 3.2% from 3.7% in urban areas.
  • In both rural and urban areas, the decline in female unemployment was lower than the decline in male unemployment. 
    • Female labour force participation in urban areas reached 27.2% for the first time.
    • However, even as the ratio of women willing to join the workforce rises, their participation in the economy is declining.
  • The ratio of female workers to male workers working as legislators, senior officials and managers reduced to 14.4% in 2023 from 19% earlier.
    • The decline was much starker in urban areas than in rural areas. 
    • The ratio of women working as legislators, senior officials and managers went down 4.8% points in urban areas to 13.8% within a year, compared with 4.1% point decline to 15.4%.
  • However, the ratio of women working as professional and technical workers was up during this period to 49.4% from 46.5%.
  • According to data, more women with advanced degrees were also able to find work compared with men.

Periodic Labour Force Survey (PLFS):

  • The National Sample Survey Office (NSSO) launched the Periodic Labour Force Survey (PLFS) in April 2017. 
  • The Periodic Labour Force Survey (PLFS) gives estimates of Key employment and unemployment Indicators like the Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), Unemployment Rate (UR), etc.
    • Labour Force Participation Rate (LFPR): LFPR is defined as the percentage of persons in the labour force (working or seeking or available for work) in the population.
    • Worker Population Ratio (WPR): WPR is defined as the percentage of employed persons in the population.
    • Unemployment Rate (UR): UR is defined as the percentage of persons unemployed among the persons in the labour force.
    • Current Weekly Status (CWS): The activity status determined on the basis of a reference period of last 7 days preceding the date of survey is known as the current weekly status (CWS) of the person.

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