According to the quarterly Periodic Labour Force Survey (PLFS) data for urban India released by the National Statistical Office (NSO) on Monday, the female unemployment rate fell more sharply, causing the urban unemployment rate in the July-September quarter (Q2) of FY25 to drop to a new low of 6.4% since data collection started in 2017.
Before this, the unemployment rate in Q1 FY25 had dropped to 6.6% from a four-quarter high of 6.7% in Q4 FY24. During the quarter, the headline unemployment rate for women under the current weekly status (CWS), which bases activity status on the reference period over the seven days before the survey date, was 8.4%, which is lower than 9 per cent in the preceding quarter.
The study also revealed that the urban unemployment rate for young people (15–29 years old) decreased from 16.8% in the previous quarter to 15.9% in the second quarter. This number is significant since it represents the health of the labour market, and individuals in this age range are typically new to the workforce. During the quarter, the unemployment rate for young women decreased more quickly than young men’s.
According to the poll, the labour force participation rate (LFPR), which measures the proportion of the urban population that is either employed or looking for work, increased from 50.1% in Q1 to 50.4% in Q2.
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