Unemployment rate dips to 6.8% in January-March 2023: Govt survey

The National Sample Survey Survey (NSSO) revealed that the unemployment rate for individuals aged 15 years and above in urban areas decreased from 8.2 percent a year ago to 6.8 percent during January-March 2023. The unemployment rate represents the proportion of unemployed individuals in the labour force.

During the period of January-March 2022, joblessness was considerably high, primarily as a result of the severe effects of Covid-related restrictions implemented in the country.

According to the 18th Periodic Labour Force Survey (PLFS), the unemployment rate (UR) for individuals aged 15 years and above in urban areas was 7.6 percent in April-June 2022. However, in the subsequent quarters, the unemployment rate showed a slight decline. It was 7.2 percent in July-September 2022 and October-December 2022.

During the period of January-March 2022, the unemployment rate stood at 8.2 percent.

Furthermore, the data revealed that the unemployment rate among females aged 15 years and above in urban areas experienced a decline. In January-March 2023, it decreased to 9.2 percent from 10.1 percent in the same quarter of the previous year. Additionally, the unemployment rate among females was 9.6 percent in October-December 2022, 9.4 percent in July-September 2022, and 9.5 percent in April-June 2022.

In January-March 2023, the unemployment rate among males in urban areas decreased to six percent, compared to 7.7 percent in the same quarter of the previous year. It was further recorded as 6.5 percent in October-December 2022, 6.6 percent in July-September 2022, and 7.1 percent in April-June 2022.

Regarding the labour force participation rate in Current Weekly Status (CWS) for individuals aged 15 years and above in urban areas, it witnessed an increase. In the January-March quarter of 2023, it rose to 48.5 percent from 47.3 percent in the corresponding period of the previous year. Additionally, the participation rate was 48.2 percent in October-December 2022, 47.9 percent in July-September 2022, and 47.5 percent in April-June 2022.

The term “labour force” refers to the portion of the population that is engaged in or available for work, including both employed and unemployed individuals. The National Sample Survey Organization (NSSO) introduced the Periodic Labour Force Survey (PLFS) in April 2017. The PLFS provides quarterly data on various indicators of the labour force, such as the unemployment rate, Worker Population Ratio (WPR), Labour Force Participation Rate (LFPR), distribution of workers by employment status and industry, based on the Current Weekly Status (CWS) approach.

The estimates of unemployed persons in CWS provide an overview of unemployment during a specific seven-day period within the survey timeframe. In the CWS approach, a person is classified as unemployed if they did not work for at least one hour on any day during the week but actively sought or were available for work for at least one hour.

The labour force, as defined by the CWS, represents the number of individuals who are either employed or unemployed on average during the week preceding the survey. The LFPR is calculated as the percentage of the population within the labour force.

The WPR, measured as a percentage, in CWS for individuals aged 15 years and above in urban areas was 45.2 percent in January-March 2023, compared to 43.4 percent in the same period of the previous year. It was also recorded as 44.7 percent in October-December 2022, 44.5 percent in July-September 2022, and 43.9 percent in April-June 2022.

This quarterly bulletin, covering the period of January-March 2023, marks the eighteenth publication in the series.