Unemployment at 5.1%, Women Labour Force Rises: PLFS Data

General Studies Paper-3

Context: The latest Periodic Labour Force Survey (PLFS) data, released by the Ministry of Statistics & Programme Implementation (MoSPI), shows that India’s unemployment rate stood at 5.1% in April 2025.

Periodic Labour Force Survey (PLFS)

• About: It is conducted by the MoSPI to assess employment and unemployment trends in India.
• It provides key labour market indicators, including the Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR).
• Features:
  • Revamped Sampling Design (2025): The survey now includes monthly estimates for both rural and urban areas, improving data accuracy.
  • Current Weekly Status (CWS) Approach: Measures employment status based on activity in the last seven days preceding the survey.
  • Expanded Coverage: The sample size has increased to 22,692 First Stage Units (FSUs), covering both rural and urban sectors.
  • Earlier, 12,800 FSUs surveyed in PLFS up to December, 2024.
  • Annual Reports: PLFS results are now released based on the calendar year, ensuring timely updates.

Key Findings of the PLFS Report

• Unemployment Rate: It is defined as the percentage of persons unemployed among the persons in the labour force.
  • Overall (persons aged 15 years and above): 5.1%
• Male:2%; Female: 5.0%
• Rural:5%; Urban: 6.5%
  • Youth among urban females (15-29 years): 23.7%
• Labour Force Participation Rate (LFPR): It is defined as the percentage of persons in the labour force (i.e. working or seeking or available for work) in the population.
  • For persons aged 15 years and above: 55.6%
  • Rural:0%; Urban: 50.7%
  • Male:0% (rural areas); 75.3% (urban areas)
  • Female: 38.2% (rural areas); 25.7% (urban areas)
  • Worker Population Ratio (WPR): It measures employed persons as a percentage of the total population.
  • Overall:8%
  • Rural WPR:4%; Urban WPR: 47.4%
  • Female WPR:8% (rural areas); 23.5% (urban areas)

Significance of the Findings

• The rise in female labour force participation, particularly in rural areas, signifies increasing economic engagement.
• However, high youth unemployment among urban females raises concerns about gender disparities, job availability, and skill gaps.
• The revamped PLFS model provides monthly employment estimates, but timely implementation of corrective measures remains a challenge.