Context:

The Ministry of Statistics and Programme Implementation recently released the Periodic Labour Force Survey (PLFS) for the October–December 2024 quarter. The survey provides key insights into urban unemployment, labor force participation, and workforce distribution across various employment categories and sectors.

Unemployment Rate in Urban Areas

The overall unemployment rate for individuals aged 15 years and above stood at 6.4% during October–December 2024.

The unemployment rate for males was 5.8%, while for females, it was higher at 8.1%.

Compared to the same quarter in 2023, this reflects a slight improvement from 6.5%. The female unemployment rate also saw a marginal decline from 8.6% last year.

In comparison to the previous quarter (July–September 2024), the unemployment rate remained unchanged at 6.4%.

State-wise Unemployment Trends

Himachal Pradesh recorded the highest urban unemployment rate at 10.4%.

Gujarat had the lowest unemployment rate at 3.0%.

Among females, Himachal Pradesh had the highest unemployment rate at 24%, while Delhi recorded the lowest at 1.3%.

Labour Force Participation Rate (LFPR) in Urban Areas

The Labour Force Participation Rate (LFPR), which indicates the proportion of the population actively engaged in the labor force, was 39.6% for all age groups—an increase from 39.2% in the same quarter last year.

The LFPR for women saw a marginal rise of 0.1 percentage points, increasing to 20% from 19.9% in the previous year, though it slightly declined from 20.3% in the last quarter.

Bihar recorded the lowest LFPR, with 30.7% overall and 9.9% for women.

Worker Population Ratio (WPR) in Urban Areas

The Worker Population Ratio (WPR) for individuals aged 15 and above increased from 46.6% in October–December 2023 to 47.2% in October–December 2024.

The WPR for males also saw an increase, rising from 69.8% to 70.9% over the same period.

Employment Categories

39.9% were self-employed, including own-account workers, employers, and unpaid helpers in household enterprises.

49.4% were regular employees, i.e., wage/salaried workers.

10.7% were casual laborers, engaged in temporary or irregular work.

Sector-wise Workforce Distribution

5.5% of workers were engaged in the agriculture sector.

31.8% were employed in the secondary sector, which includes manufacturing, mining, and construction.

62.7% of workers were employed in the tertiary sector, which includes services, trade, transport, finance, and other professional activities.

Conclusion:

The report highlights both progress and persistent challenges in urban employment. While overall unemployment has improved slightly, gender disparities remain evident, with female unemployment still significantly higher than that of males. Additionally, state-wise variations emphasize