According to the National Sample Survey (NSSO), the unemployment rate among individuals aged 15 years and above in urban areas decreased from 6.8 percent a year ago to 6.7 percent in the January-March period.
Decline and Demographic Dynamics of Unemployment Rate in Urban Areas
The survey monitors unemployment among those aged 15 years and above within urban localities showing a decline in the unemployment rate for the January-March quarter of 2024.
The unemployment rate declined to 6.7% during this period as compared to 6.8% in the corresponding period last year pointing to a gradual job market recovery for city dwellers.
When looking at specific demographics, however, the survey results gives us a more complex picture. The decrease in unemployment is especially notable among women looking for jobs in urban areas. Women’s unemployment rate for the age group 15 years and above decreased from 9.2% to 8.5% between January and March 2024 and last year.
On the other hand, there’s a rise in men’s urban area unemployed cases according to data released by NSSO. For males, this figure reached up to 6.1% during January-March of this year as against its previous score of 6%.
Participation on the Rise One positive trend highlighted by the survey is the increase in people actively participating in the workforce in urban areas. This includes individuals who are currently employed or actively searching for employment. From January to March 2024, the labour force participation rate rose to 50.2%, compared to 48.5% during the same period last year. This indicates that more individuals are either entering or rejoining the job market.
Understanding the Data The NSSO (National Sample Survey Office) conducts the Periodic Labour Force Survey (PLFS) to gather information on different labour market indicators. In this survey, unemployment is defined as individuals who were available for work but did not engage in any work activity during a specific week. By analyzing this data, policymakers and economists can obtain valuable insights into the state of the job market.
Looking ahead the decrease in urban unemployment rates, and the increase in labour force participation are encouraging signs for the Indian job market. Although there has been a slight rise in unemployment among men, the overall pattern indicates progress. It is essential to continuously monitor these indicators to assess the long-term condition of the labour market and ensure equal opportunities for all job seekers in India's cities.
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