Good News for India: Urban unemployment rate falls to 7.2 per cent in October-December 2022

In a major relief, as per a report by the National Sample Survey (NSSO), the unemployment rate for people aged 15 and over in urban areas dipped to 7.2 per cent during October to December 2022 from 8.7 per cent during the same period in 2021. The report stated that joblessness was high in 2021 due to the economic downturn from the Covid19 related lockdown and other restrictions. The unemployment rate from July-September to 2022 remained stable at 7.2 per cent. The 17th Periodic Labour Force Survey (PLFS) pointed out that the unemployment rate for people over the age of 15 stood marginally higher at 7.6 per cent from April to June 2022. However, in the first quarter of 2022, from January to March – the unemployment rate peaked at 8.2 per cent.

The Periodic Labour Force Survey (PLFS) report also points out that those migrants who had returned to their villages during the pandemic’s peak have returned to the cities.

The report found that the unemployment rate among females in urban areas in the same age group declined to 9.6 per cent in October-December 2022 from 10.5 per cent in 2021 during the same period. Notably, in 2022, the employment rate among females was 9.4 per cent in July-September, 9.5 per cent in April-June and 10.1 per cent in January-March 2022.

The unemployment rate in urban areas among males have also dipped to 6.5 per cent in October-December 2022, which was 8.3 per cent in 2021 during the same period. Also, This was 6.6 per cent in July-September 2022, 7.1 per cent in April-June 2022 and 7.7 per cent in January-March 2022.

Furthermore, the Periodic Labour Force Survey (PLFS) report suggests that even the labour markets have recovered from the Covid-19 pandemic period.

Labour force participation rate in Current Weekly Status in urban areas for those aged 15 years and above has increased to 48.2 per cent in the October-December 2022 from 47.3 per cent during the same period in 2021. Also, labour participation during July and September 2022 was 47.9 per cent, while it was 47.5 per cent during April-June 2022.