The urban employment scene in India appears to be on the rise, according to the latest data from the Periodic Labour Force Survey (PLFS) for the quarter spanning from July to September 2024. This survey, released by the Ministry of Statistics and Programme Implementation (MoSPI), indicates notable increases across various employment metrics, reflecting gradual recovery and growth within the urban labor market.
One of the standout figures from the survey is the Labour Force Participation Rate (LFPR) for individuals aged 15 years and older, which climbed from 49.3% during the same quarter last year to 50.4% this year. This increase is significant as it demonstrates the government’s commitment to increasing employment opportunities through various initiatives.
Looking at the numbers more closely, the LFPR for men rose from 73.8% to 75.0%, signifying strengthening employment prospects for males within urban areas. Meanwhile, the LFPR for women saw progress as well, going from 24.0% to 25.5%. This upward trend for female participation is particularly noteworthy, as it reflects shifting societal norms and initiatives aimed at empowering women within the workforce.
Another key metric, the Worker Population Ratio (WPR), which gauges the percentage of employed individuals within the total population, also saw improvement. The WPR increased from 46.0% to 47.2%, showing more people are finding jobs. For men, the WPR escalated from 69.4% to 70.7%, whereas for women, it rose from 20.6% to 21.8%. Such advancements point toward increasing stability and reliability within the labor market.
While improvements were noted, the survey also highlighted declines in the Unemployment Rate (UR) across the board. The UR for urban areas reduced slightly from 6.6% to 6.4%. Breaking this down by gender shows male unemployment dropping from 6.0% to 5.7%, and female unemployment declining from 8.6% to 8.4%. These reductions suggest positive momentum, implying more individuals are securing jobs.
Launched back in 2017, the PLFS was created to provide timely insights and analyze employment trends, focusing primarily on urban areas. It offers data on labor statistics quarterly, utilizing the Current Weekly Status (CWS) approach, which examines individuals' activities over the week leading up to the survey.
For this latest quarter report, the survey covered 5,739 urban areas, collecting data from 45,005 households and over 170,000 individuals. Most of the fieldwork was carried out smoothly, with some minor delays reported particularly in states like Maharashtra, Manipur, and Kerala.
Going forward, these results give hope to economists and labor analysts about potential continued growth within India's urban employment sector. While challenges may still exist, the upward trend seen this quarter provides grounds for optimism, especially as the country looks to recover fully from the disruptions caused by recent global challenges.
