The unemployment rate in urban areas of India has declined to 6.6 per cent in the July-September quarter this year from 7.2 per cent in the previous year, according to the National Sample Survey Organisation (NSSO).  The unemployment rate is defined as the percentage of unemployed in the labour force (aged between 15 to 64). 

In the previous fiscal year, the unemployment rate in the March quarter was 6.8 per cent, and 6.6 per cent in the June quarter. In July-September 2022, the unemployment rate was 7.2 per cent, according to the 20th Periodic Labour Force Survey. 

Unemployment in Urban Females

Remarkably, the unemployment rate in the urban female labour force has reduced from 9.4 per cent in the September quarter of the previous year to 8.6 per cent this year. The decline can be witnessed for consecutive quarters from last year’s December quarter. For October-December 2022, the unemployment rate among females was 9.6 per cent, 9.2 in January-March 2023, and 9.1 per cent in April-June 2023. 

Unemployment in Urban Males

For males, the unemployment rate dipped to 6 per cent from 6.6 per cent in the previous year. The trend of unemployment in males was 5.9 per cent in April-June 2023, 6 per cent in January-March 2023 and 6.5 per cent in October-December 2022.

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 launched PLFS in April 2017.

Labour force participation rate (CWS)

Labour force participation rate in the Current Weekly Status (CWS) in urban areas increased to 49.3 per cent in the September 2023 quarter from the same period in the previous year. 

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.

(With inputs from PTI)