Unemployment rate rises to 10.3% in Oct-Dec 2020, shows NSO survey

Unemployment rate for all ages in urban areas rose to 10.3 per cent in October-December 2020 as compared to 7.9 per cent in the corresponding months a year ago, showed a periodic labour force survey by the National Statistical Office (NSO).

Joblessness or unemployment rate (UR) is defined as the percentage of unemployed persons in the labour force.

The UR for all ages in urban areas was 13.3 per cent in July-September 2020, the ninth Periodic Labour Force Survey (PLFS) showed.

As per the survey, labour force participation rate for all ages in urban areas was 37.3 per cent in October-December quarter of 2020, up from 37.2 per cent in the same period a year ago. It was 37 per cent in July-September 2020.

Labour force refers to the part of the population which supplies or offers to supply labour for pursuing economic activities for the production of goods and services and therefore, includes both employed and unemployed persons.

NSO launched PLFS in April 2017. On the basis of PLFS, a quarterly bulletin is brought out giving estimates of labour force indicators namely UR, Worker Population Ratio (WPR), Labour Force Participation Rate (LFPR), distribution of workers by broad status in employment and industry of work in Current Weekly Status (CWS).

The estimates of unemployed persons in CWS give an average picture of unemployment in a short period of seven days during the survey period.

In the CWS approach, a person is considered unemployed if he/she did not work even for one hour on any day during the week but sought or was available for work at least for one hour on any day during the period.

Labour force according to CWS is the number of persons either employed or unemployed on an average in a week preceding the date of survey. LFPR is defined as the percentage of population in the labour force.

WPR stood at 33.5 per cent in October-December 2020, down from 34.2 per cent in the same period a year ago. It was 32.1 per cent in July-September 2020.

Eight bulletins of PLFS corresponding to quarters ended December 2018, March 2019, June 2019, September 2019, December 2019, March 2020, June 2020 and September 2020 have already been released. The latest bulletin is the ninth in the series.