The Unemployment Rate (UR) among persons aged 15 years and above rose marginally to 5% in January from 4.8% in December, highlighting slightly fewer job opportunities in both rural and urban areas, according to the Periodic Labour Force Survey (PLFS) released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday.
The unemployment rate, as per the Current Weekly Status (CWS) approach, increased in urban areas to 7% from 6.7% in December, while rural unemployment edged up to 4.2% from 3.9%.
Seasonal Headwinds
“The rise in UR in January is primarily rural-driven, with seasonal factors, post-harvest slack, and discouragement effects playing a key role. Many activities like construction, agriculture-allied work, transport, and small trade slow down in winter. Urban areas remained relatively stable,” the MoSPI said.
The unemployment rate was largely stable among males aged 15 years and above in January. It recorded a marginal uptick to 6% from 5.9% in December among urban males and remained at 4.1% for the third consecutive month in rural areas. Among females aged 15 years and above, the UR recorded a notable jump from 4.9% in December to 5.6% in January.
Shifts in Labor Participation
The Labour Force Participation Rate (LFPR), defined as the percentage of the population in the labour force, declined marginally to 55.9% in January from 56.1% in December. Rural LFPR declined to 58.7% from 59%, while urban LFPR edged up slightly to 50.3% from 50.2%. The female LFPR declined to 35.1% in January from 35.3% in December.
The Worker Population Ratio (WPR), which measures the share of employed people in the population, declined in January after staying on an upward trajectory for six months. The WPR fell to 53.1% in January after a gradual rise from June (51.2%) to December (53.4%). The WPR in rural areas declined to 56.2%. In rural areas, the male and female WPR stood at 75.7% and 38%, respectively, compared to 76% and 38.6% in December. Urban WPR remained stable at 46.8% in January.
According to the MoSPI, the CWS approach determines an individual’s activity status based on the seven days preceding the survey date. Under this method, a person is considered unemployed in a week if they did not work even for one hour on any day during the reference week but sought or were available for work for at least one hour on any day during the same period.
The monthly estimates at the all-India level are based on information collected from a total of approximately 3.73 lakh persons surveyed, including 2.13 lakh in rural areas and 1.60 lakh in urban areas.