India's unemployment rate declines in Q2
What's the story
India's unemployment rate has decreased to 5.2% in the July-September quarter, down from 5.4% in the previous quarter. The decline is mainly due to a surge in rural employment during the farming season and an increase in female workforce participation, according to government data released on Monday. The Periodic Labor Force Survey (PLFS) conducted by the Ministry of Statistics covered 564,000 people across India and estimated that there were around 562 million employed persons during this period.
Regional disparities
Rural unemployment declines to 4.4%
The PLFS data showed that unemployment among people aged 15 years and above in rural areas fell to 4.4% in the July-September quarter, down from 4.8% in the previous quarter. However, urban unemployment slightly increased to 6.9% from 6.8%. The overall labor force participation rate (LFPR) also saw a marginal increase to 55.1%, up from 55% in the last quarter.
Gender dynamics
Rise in female participation
The survey also highlighted a significant rise in female participation in the workforce, with the rate rising to 33.7% from 33.4%. This marks a continued upward trend of women's engagement in employment. However, it's worth noting that urban unemployment among women did see a slight increase to 9%, up from 8.9% previously. Among men it was at 6.2%, up from 6.1% in the previous quarter.
Employment distribution
Increase in Worker Population Ratio
The Worker Population Ratio (WPR), which indicates the proportion of employed persons in the total population, also saw a slight increase to 52.2% from 52%. This was largely driven by higher female participation, particularly in rural areas. The survey found that agriculture employed nearly 58% of rural workers during this quarter, up from about 54% earlier.