Unemployment rate (UR) in urban areas remained flat at 6.4% in Q3FY25 as against the previous quarter, but fell 10 basis from Q3FY24, the latest periodic labour force survey (PLFS) data released by the statistics ministry on Tuesday showed.
The female UR in urban areas declined to 8.1% in Q3FY25 from 8.4% in Q2, and 8.6% in Q3FY24, while the male UR rose to 5.9% in Q3FY25 from 5.7% in Q2 and 5.8% in Q3FY24. This data is based on the current weekly status (CWS) of persons.
Experts said it’s difficult to find an exact reason for an increase in male UR, in urban areas, but added that it may be due to temporary loss of jobs in the manufacturing & construction sectors during October-December.
The secondary sector, along with mining & quarrying, witnessed a drop in total workforce to 31.8% in Q3FY25 from 32.3% in Q2FY25 and 32.1% in Q3FY24. The male workers’ percentage in the secondary sector dropped to 33.8% in Q3 from 34.2% in Q2, and 33.9% in Q3FY24.
Whereas, the percentage of all workers in the tertiary sector, in urban areas, increased to 62.7% in Q3FY25 from 62.3% in Q2FY24, and 62% in Q3FY24. However, experts said that these quarterly figures don’t represent any trend.
Meanwhile, the worker population ratio (WPR)–percentage of workers in the population–rose to 37.1% in Q3FY25 from 37% a quarter back, and 36.7% in Q3FY24. The WPR of males increased to 55% in Q3 from 54.8% in Q2, and 54.5% in Q3FY24; whereas for females, it declined to 18.4% in Q3FY25 from 18.6% in Q2FY25. In Q2FY24, the female WPR was 18.2%.
The labour force participation rate (LFPR)–percentage of persons in the labour force (working or seeking or available for work) in the population–remained unchanged at 39.6% in Q3FY25 as against Q2, but rose from 39.2% in Q3FY24.
The female LFPR declined to 20% in Q3FY25 from 20.3% in Q2FY25, but was up from 19.9% in Q3FY24. The male LFPR, on the other hand, rose to 58.5% from 58.2% (Q2FY25) and 57.8% (Q3FY24).
Lekha Chakraborty, professor, National Institute of Public Finance and Policy said: “The National Urban Livelihood Mission (NULM) has a prominent role in increasing urban employment. It is the biggest employment linked poverty eradication programme in India. The role of public policies in creating economic activities has helped in redressing the employment problems in urban India.”