India’s Labour Force Sees Marginal Shifts in Participation, Employment, and Unemployment

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India’s labour market, as revealed by the 2024 Periodic Labour Force Survey (PLFS), demonstrates nuanced shifts across urban and rural sectors, reflecting both challenges and progress in employment dynamics. The latest PLFS report, spearheaded by the Ministry of Statistics and Programme Implementation, examines trends through both the Current Weekly Status (CWS) and Usual Status (PS+SS) approaches, offering crucial insights into the nation’s economic activity and workforce composition.

In urban India, the Labour Force Participation Rate (LFPR) witnessed an increase among males, rising from 74.3 percent in 2023 to 75.6 percent in 2024, while female LFPR showed a minor uptick from 25.5 percent to 25.8 percent. This contributed to an overall urban LFPR growth, climbing from 50.3 percent to 51.0 percent. However, rural LFPR painted a different picture, experiencing a slight decline in the participation of females, from 47.3 percent to 45.8 percent, while male LFPR improved marginally from 79.8 percent to 80.6 percent. Combining rural and urban data, the national LFPR for persons aged 15 years and above registered a slight reduction, settling at 59.6 percent in 2024, down from 59.8 percent in 2023.

Worker Population Ratio (WPR) trends similarly reflected slight movements. Urban WPR for males rose from 71.6 percent to 72.8 percent, while urban females saw a modest improvement from 25.2 percent to 25.8 percent, pushing the urban WPR for all persons from 48.8 percent to 49.6 percent. Rural WPR, however, declined with male WPR shifting from 77.7 percent to 78.4 percent and female WPR dropping from 46.4 percent to 44.8 percent. At the all-India level, the combined WPR experienced a marginal decline, settling at 57.7 percent compared to 58.0 percent in 2023.

Unemployment Rates (UR) exhibited varied trends. At the national level, the UR edged up slightly from 3.1 percent in 2023 to 3.2 percent in 2024. Rural unemployment rates showed mixed shifts, with male unemployment rising from 2.7 percent to 2.8 percent, and female rates increasing marginally from 1.9 percent to 2.1 percent. Urban UR trends revealed contrasting patterns; while male unemployment rose from 6.0 percent to 6.1 percent, female unemployment rates improved substantially, dropping from 8.9 percent to 8.2 percent, stabilizing the overall urban unemployment rate at 6.7 percent.

The PLFS survey, initiated in 2017 by the National Statistics Office, aims to deliver timely data on employment and unemployment, employing two principal methodologies—the Current Weekly Status and Usual Status approaches. The 2024 survey encompassed 12,749 First Stage Units (FSUs), canvassing 6,982 villages and 5,767 urban blocks. In total, 101,957 households and 415,549 individuals (240,492 rural, 175,057 urban) were surveyed, reflecting diverse demographics and regional nuances in economic participation.

A noteworthy observation from the PLFS data highlights the diminishing role of unpaid helpers in household enterprises, particularly among rural females. Their participation dropped from 19.9 percent in 2023 to 18.1 percent in 2024, influencing both LFPR and WPR figures for rural women.

The government attributes these shifts to broader economic policies and evolving workforce dynamics, underscoring the importance of this data for informed policymaking. As India continues to navigate challenges and opportunities in employment, the PLFS remains a cornerstone for understanding its workforce, guiding strategies for equitable growth and enhanced labour market efficiency.

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