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Unemployment at 5.1%, Women Labour Force Rises: PLFS Data

Last updated on May 16th, 2025 Posted on May 16, 2025 by NEXT IAS Current Affairs Team  552

Syllabus: GS3/Economy; Employment

Context

  • The latest Periodic Labour Force Survey (PLFS) data, released by the Ministry of Statistics & Programme Implementation (MoSPI), shows that India’s unemployment rate stood at 5.1% in April 2025.

Periodic Labour Force Survey (PLFS)

  • About: It is conducted by the MoSPI to assess employment and unemployment trends in India.
    • It provides key labour market indicators, including the Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR).
  • Features: 
    • Revamped Sampling Design (2025): The survey now includes monthly estimates for both rural and urban areas, improving data accuracy.
    • Current Weekly Status (CWS) Approach: Measures employment status based on activity in the last seven days preceding the survey.
    • Expanded Coverage: The sample size has increased to 22,692 First Stage Units (FSUs), covering both rural and urban sectors.
      • Earlier, 12,800 FSUs surveyed in PLFS up to December, 2024.
    • Annual Reports: PLFS results are now released based on the calendar year, ensuring timely updates.
Periodic Labour Force Survey PLFS

Key Findings of the PLFS Report

  • Unemployment Rate: It  is defined as the percentage of persons unemployed among the persons in the labour force.
    • Overall (persons aged 15 years and above): 5.1%
    • Male: 5.2%; Female: 5.0%
    • Rural: 4.5%; Urban: 6.5%
    • Youth among urban females (15-29 years): 23.7%
state of unemployment
  • Labour Force Participation Rate (LFPR): It is defined as the percentage of persons in the labour force (i.e. working or seeking or available for work) in the population.
    • For persons aged 15 years and above: 55.6%
    • Rural: 58.0%; Urban: 50.7%
    • Male: 79.0% (rural areas); 75.3% (urban areas)
    • Female: 38.2% (rural areas); 25.7% (urban areas)
  • Worker Population Ratio (WPR): It measures employed persons as a percentage of the total population.
    • Overall: 52.8%
    • Rural WPR: 55.4%; Urban WPR: 47.4%
    • Female WPR: 36.8% (rural areas); 23.5% (urban areas)

Significance of the Findings

  • The rise in female labour force participation, particularly in rural areas, signifies increasing economic engagement. 
  • However, high youth unemployment among urban females raises concerns about gender disparities, job availability, and skill gaps.
  • The revamped PLFS model provides monthly employment estimates, but timely implementation of corrective measures remains a challenge.

Source: TH

 
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