India’s unemployment rate for individuals aged 15 and above has dropped to 3.1% in 2023, marking the lowest in the past three years, according to a report by the National Sample Survey Organisation (NSSO) under the statistics ministry. The Periodic Labour Force Survey (PLFS) for the calendar year 2023 indicates a positive trend, showcasing a decline from 3.6% in 2022 and 4.2% in 2021.
The data reveals a recovery in the employment scenario post the impact of the Covid-19 pandemic, with increased economic activity after the lifting of lockdowns by the Centre and states. The unemployment rate is defined as the percentage of unemployed individuals in the labour force.
Notable improvement in unemployment rate
The survey also highlights a decline in the unemployment rate among females to 3% in 2023 from 3.3% in 2022 and 3.4% in 2021. Similarly, for males, it decreased to 3.2% in 2023 from 3.7% in 2022 and 4.5% in 2021.
Urban areas witnessed a reduction to 5.2% in 2023 from 5.7% in 2022 and 6.5% in 2021, while rural areas experienced a decrease to 2.4% in 2023 from 2.8% in 2022 and 3.3% in 2021.
The Labour Force Participation Rate (LFPR) in Current Weekly Status (CWS) for individuals aged 15 and above in urban areas rose to 56.2% in 2023, showing an upward trajectory from 52.8% in 2022 and 51.8% in 2021. The LFPR represents the portion of the population actively involved in economic activities.
India’s robust 8.4% economic growth
This positive employment data comes on the heels of recent reports indicating India’s economic growth surging to 8.4% in the third quarter of 2023-24. Sectors such as manufacturing, mining & quarrying, and construction played a pivotal role in driving this growth, as per data released by the National Statistical Office (NSO).
The NSO’s second advance estimate pegs the country’s growth at 7.6% for the entire fiscal year 2023-24, surpassing the initial projection of 7.3% released in January 2024.