Unemployment rate drops to 6.5% in Oct-Dec 2023: NSO survey

India recorded a decline in the unemployment rate in urban areas, dropping from 7.2% to 6.5% between October–December 2022 and October–December 2023 for individuals aged 15 years and above, the latest Periodic Labour Force Survey (PLFS) by the National Sample Survey Office (NSSO) shows. "For males, the unemployment rate decreased from 6.5% to 5.8% in the said period, while for female it dipped from 9.6% to 8.6%," the NSO survey shows.

It shows there has been a "steady rise" in the labour force participation rate (LFPR) among urban residents, with figures climbing from 48.2% to 49.9% for the same age group over the same period. Additionally, the female labour force participation rate in urban areas has shown an increase from 22.3% to 25% between October–December 2022 and October–December 2023, respectively, showing an overall upward trend in the labour force participation.

Furthermore, the worker population ratio (WPR) for those aged 15 years or more shows an "upward" trajectory. The WPR for those aged 15 years or more rose from 44.7% in October–December 2022 to 46.6% in the year-ago period. "For male, it increased from 68.6% to 69.8% during this period and for female, it increased from 20.2% to 22.9% during this period."

The NSO survey primarily targets urban areas, focusing on estimating indicators such as the worker population ratio, labour force participation rate, and unemployment rate within a three-month time frame. The latest quarterly bulletin, the twenty-first in the series, covers the period from October to December 2023. In the urban areas surveyed during the October–December 2023 quarter, a total of 5,697 first-stage sampling units (FSUs) were covered, encompassing 44,544 households and 169,209 individuals.