Urban unemployment eases to 6.4% in Q3 FY2025: NSSO

India’s urban unemployment rate for individuals aged 15 and above declined to 6.4% in the October-December quarter, down from 6.5% in the year-ago period, according to data released by the National Sample Survey Office (NSSO) on Tuesday.

The urban unemployment rate stood at 5.8% for men and 8.1% for women in the October-December 2024 quarter, according to the PLFS report released by the ministry of statistics and programme implementation (MoSPI), compared to 5.8% and 8.6%, respectively, during the year-ago period.

The unemployment rate measures the share of jobless individuals within the labour force.

Also read |  MoSPI reports mixed employment trends in November

According to the NSSO, 5,742 urban sampling units were surveyed across urban India in the October-December 2024 quarter under the Urban Frame Survey.

The survey covered 45,074 households and 1,70,487 individuals.

According to MoSPI, a person's current weekly status (CWS) is determined based on their activity in the seven days preceding the survey date.

Rotational panel sampling

Urban areas follow a rotational panel sampling design, where each selected household is surveyed four times—first with an initial visit and then through three follow-ups, the survey said.

"The scheme of rotation ensures that 75% of the first-stage sampling units (FSUs) are matched between two consecutive visits," it added.

Meanwhile, India’s urban labour force participation rate (LFPR) for those aged 15 and above rose to 50.4% in the October-December quarter, up from 49.9% a year ago, according to the data.

Male LFPR climbed to 75.4% from 74.1%, while female LFPR edged up to 25.2% from 25.0%.

Also read |  Headline labour force survey data masks a pressing employment problem

The labour force participation rate is the ratio of the total labour force to the total working-age population, expressed as a percentage.

Typically, the working-age population is defined as people with ages 15 and above.

India’s urban worker population ratio (WPR) for those aged 15 and above rose to 47.2% in the October-December 2024 quarter, up from 46.6% a year earlier.

Male WPR climbed to 70.9% from 69.8%, reflecting a broader upward trend.

Female WPR climbed to 23.2% from 22.9% during the same period.

The worker-population ratio measures the percentage of people in a population who are employed.

Launched in 2017, the NSSO’s PLFS provides quarterly reports on key labour force indicators, including the unemployment rate, worker population ratio (WPR), labour force participation rate (LFPR), and employment distribution by status and industry.

Also read | World Bank urges India to transform and reform skills education