PERIODIC
LABOUR FORCE SURVEY: ECONOMY
NEWS: Slight dip in unemployment rate in urban
areas: survey
WHAT’S
IN THE NEWS?
The Periodic Labour Force Survey
(PLFS) for Oct-Dec 2024 reports a slight decrease in the unemployment rate in
urban areas among persons aged 15 years and above, indicating a gradual
improvement in urban employment conditions and greater workforce inclusion,
particularly among females, though regional disparities persist.
Analysis of Unemployment Trends and
Economic Recovery
- Gradual Decline in
Urban Unemployment: The small decrease in the unemployment rate from 6.5%
to 6.4% reflects subtle improvements in economic conditions within urban
settings. This change, although minor, is indicative of positive momentum
in the job market.
- Persistent Gender
Disparities in Employment: The unemployment rate for women decreased from
8.6% to 8.1%, showing progress, yet it still remains significantly higher
than the 5.8% for men. This persistent gap underscores the ongoing
challenges in achieving gender parity in employment opportunities.
Enhanced Workforce Inclusion and
Participation
- Overall Increase in
Labour Force Participation: The Labour Force Participation Rate (LFPR) has
seen a marginal increase to 39.6%. This increase is critical as it
indicates a higher percentage of the population is either employed or
actively seeking employment, showcasing a strengthening labor market.
- Incremental Rise in
Female Labour Force Participation: The rise in female LFPR to 20% is a
positive sign of more women entering or remaining in the workforce,
although the increment is slight. This movement is crucial for economic
growth and social equity.
Regional Challenges and Detailed
Policy Implications
- Significant Regional
Variability in Employment: Specific regions such as Himachal Pradesh
exhibit notably high unemployment rates, while Bihar shows low
participation rates. These disparities highlight the uneven distribution
of employment opportunities across different states and the necessity for
tailored economic and employment policies.
- Data-Driven Policy
Design: The insights from PLFS are invaluable for policymakers aiming to
create more effective employment programs. These programs could focus on
regions with acute unemployment, enhancing vocational training and
education programs, or incentivizing industries to set up in areas with
low participation rates.
Sector-Wise Employment Insights and
Implications
- Sectoral
Distribution of Employment: The majority of the urban workforce is
employed in the tertiary (services) sector, which dominates at 62.7%. This
sector’s predominance points to an urban economy heavily reliant on
services, which may necessitate policies supporting other sectors like
manufacturing and agriculture for balanced economic development.
- Breakdown of
Employment Types: The composition of employment types with a significant
portion in regular wage or salaried positions suggests stability in job
structures. However, the notable percentage of self-employed individuals
at 39.9% also indicates a significant reliance on entrepreneurial
activities, which may require support through policies facilitating
business development and easing access to finance.
PLFS Report:
Labour
Force Participation Rate (LFPR)
- Overall LFPR: Increased slightly to 39.6%
from 39.2% in the previous year.
- Women's LFPR: Marginal increase to 20% from
19.9% in the previous year, with a slight decrease from 20.3% in the
previous quarter.
- Lowest LFPR by State: Bihar.
Gender-wise
Unemployment Rate
- Men:
5.8%.
- Women: 8.1%, down from 8.6% in the previous year.
State-wise
Unemployment Rates
- Highest: Himachal Pradesh at 10.4%.
- Lowest: Gujarat at 3%.
State-wise
Female Unemployment Rates
- Highest: Himachal Pradesh at 24%.
- Lowest: Delhi at 1.3%.
Worker
Population Ratio (WPR)
- Overall (Ages 15+ years): Increased to 47.2% from 46.6%
in the previous year.
- Male WPR: Increased to 70.9% from 69.8% in the previous
year.
Employment
Composition by Type
- Self-employed: 39.9%.
- Regular wage/salaried employees: 49.4%.
- Casual labourers: 10.7%.
Employment
Composition by Sector
- Agriculture: 5.5%.
- Secondary Sector (including mining): 31.8%.
- Tertiary Sector (services): 62.7%.
Related Key Terms:
- Labour Force Participation Rate (LFPR): Percentage of the population
aged 15 and above that is either employed or actively seeking employment.
- Worker Population Ratio (WPR): Measures the percentage of
employed individuals within the total population aged 15 years and above.
- Unemployment Rate (UR): Indicates the percentage of
unemployed persons among those in the labour force.
- Principal Activity Status (PS): Primary activity engaged in
during the 365 days preceding the survey.
- Subsidiary Economic Activity Status (SS): Additional economic
activities performed for at least 30 days in the year before the survey.
- Current Weekly Status (CWS): Reflects a person's
activities during the immediate past 7 days before the survey date.
Source: https://www.thehindu.com/business/Economy/slight-dip-in-unemployment-rate-in-urban-areas-says-survey/article69235261.ece