Unemployment rate in urban areas dips to 6.4% in December quarter: NSSO

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The unemployment rate for people aged 15 years and above in urban areas dipped to 6.4 per cent in the October-December quarter, according to the National Sample Survey Survey (NSSO).

Joblessness, or unemployment rate, is defined as the percentage of unemployed people in the labour force.

The unemployment rate in the December quarter of FY24 was 6.5 per cent. However, the rate stayed flat when compared sequentially.

In the preceding July-September quarter of FY25, the rate of unemployment for people aged 15 years and above in urban areas was at the same level of 6.4 per cent, the 25th Periodic Labour Force Survey (PLFS) showed.

The unemployment rate among females (aged 15 years and above) in urban areas declined to 8.1 per cent in October-December 2024 from 8.6 per cent in the same quarter a year ago. The rate was 8.4 per cent in July-September, 2024.

Among males, the unemployment rate in urban areas remained flat at 5.8 per cent in October-December 2024 as compared to the rate of the same quarter a year ago. The rate was 5.7 per cent in July-September, 2024.

Labour force participation rate in Current Weekly Status (CWS) in urban areas for people aged 15 years and above increased to 50.4 per cent in October-December from 49.9 per cent in the same quarter a year ago. The rate was 50.4 per cent in the July-September 2024.

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.

The NSSO had launched PLFS in April 2017.

On the basis of PLFS, a quarterly bulletin is brought out giving estimates of labour force indicators namely unemployment rate, worker population ratio (WPR), labour force participation rate (LFPR), distribution of workers by broad status in employment and industry of work in CWS.

The estimates of unemployed persons in CWS give an average picture of unemployment in a short span 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 average in a week preceding the date of the survey. LFPR is defined as the percentage of the population in the labour force.