Unemployment rate at 5.1%, increase in women labour force: PLFS data show

Analysis of PLFS April 2025 Unemployment Data

1. Overall Trends
   • UR (Unemployment Rate): 5.1% (slightly higher among men: 5.2% vs women: 5.0%).
   • Urban vs Rural: Urban unemployment (6.5%) is higher than rural (4.5%), reflecting concentration of job seekers in cities and structural mismatches in urban labour markets.
   • Youth Unemployment: High UR among 15–29 yrs, especially urban females (23.7%), highlighting the challenge of youth employability and skill mismatch.
2. Labour Force Participation
   • LFPR: Overall 55.6%, with a large gender gap. Male LFPR is 79% (rural) vs 75.3% (urban), female LFPR 38.2% (rural) vs 25.7% (urban).
   • Implication: Low female participation indicates persistent socio-cultural barriers, unpaid domestic work, and limited access to formal jobs.
3. Worker Population Ratio (WPR)
   • Rural WPR: 55.4%, Urban WPR: 47.4%, Overall: 52.8%.
   • Female WPR shows a pronounced gap: Rural 36.8%, Urban 23.5%, Overall 32.5%.
   • Implication: Employment quality and security, especially for women and urban areas, remain concerns.
4. Methodological Strengths
   • Monthly PLFS: Enhances monitoring of labour market trends in near real-time, allowing policymakers to respond faster.
   • Expanded Sample Size: Improves reliability and coverage of rural and urban employment trends.
5. Policy Implications
   • Need for targeted interventions for urban youth and female workforce (skills, entrepreneurship, formal employment).
   • Highlighting seasonal employment dependence in rural areas—policy design should factor in agriculture cycles (MGNREGA, rural skill programs).
   • Limitations: Wage data, sectoral job quality, and scheme effectiveness still missing; essential for comprehensive labour market policy.
     
     Updated - May 16, 2025 08:27 pm | The Hindu