India’s unemployment rate for individuals aged 15 and above has reached its lowest point in six years, registering at 3.2% during the period from July 2022 to June 2023, according to the Periodic Labour Force Survey Annual Report 2022-2023 released by the National Sample Survey Office.
Steady decline in unemployment
The Unemployment Rate (UR) in usual status for individuals aged 15 and above at the national level has seen a notable decline, dropping to 3.2% in 2022-23 from 4.1% in the previous fiscal year. This represents a continued decrease over the past years, with UR figures of 4.2% in 2020-21, 4.8% in 2019-20, 5.8% in 2018-19, and 6% in 2017-18, as per the PLFS data.
Rural and urban trends
Rural areas have witnessed a substantial decrease in UR from 5.3% in 2017-18 to 2.4% in 2022-23, while urban areas have experienced a decline from 7.7% to 5.4%. This trend extends to both genders, with the UR for males decreasing from 6.1% in 2017-18 to 3.3% in 2022-23 and for females from 5.6% to 2.9%.
Rise in labour force participation
The Labour Force Participation Rate (LFPR) in usual status for individuals aged 15 and above has risen to 57.9% from 49.8% in 2017-18. LFPR represents the percentage of individuals in the labour force—those working, seeking, or available for work—within the population. Notably, rural areas have seen an increase from 50.7% in 2017-18 to 60.8% in 2022-23, and urban areas have witnessed a rise from 47.6% to 50.4%.
Growing employment rates
The Worker Population Ratio (WPR) in usual status (ps+ss) for individuals aged 15 and above has also climbed to 56% in 2022-23 from 46.8% in 2017-18. WPR indicates the percentage of employed persons in the population. In rural areas, WPR increased from 48.1% in 2017-18 to 59.4% in 2022-23, and in urban areas, it grew from 43.9% to 47.7%. The WPR for males in India increased from 71.2% in 2017-18 to 76.0% in 2022-23, with a corresponding rise for females from 22.0% to 35.9%.
Timely data collection
The NSSO has been publishing Annual Reports based on data from the Periodic Labour Force Survey (PLFS) since July 2017. The latest report, covering July 2022 to June 2023, reflects the ongoing collection of information despite challenges in some regions. Field work for this period was completed on schedule, except for select regions in Manipur due to a disrupted field situation and lack of internet services.
These findings indicate a positive trend in India’s employment landscape, with declining unemployment rates and increased labour force participation and employment rates.
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