Unemployment rate

  • March 15, 2022
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Unemployment rate

Topic: Economy

Section: Unemployment and Inflation

Latest report- Periodic Labour Force Survey (PLFS) of April-June 2021.

  • 12.7 persons out of 100 in the labour force are unemployed.
  • The unemployment rate among the labour force between 15 and 29 years is 25.5. In the last quarter it was 22.9 and in the corresponding quarter of 2020 it was 34.7.
  • The unemployment rate among women in this age group is 31 and among men it is 24.
  • The unemployment rate among all ages during the period is 12.7. The rate among women in all ages is 14.3 and men in all ages is 12.2.
  • The highest urban unemployment rate for persons of all ages is in Kerala at 24.4, followed by Chhattisgarh (19.2). Gujarat has the lowest (5.5), followed by Delhi (7.9).
  • The urban unemployment rate is 12.6 percent, three per cent higher than its previous quarter. During the same period, the GSDP at constant price fell over 20 per cent – denotes even a short run fall in the economic growth contributes to rise in the unemployment.
  • Labour Force Participation Rate (LFPR), is 37.1. In the last quarter it was 37.5 and in the corresponding quarter of 2020, the number was 35.9.
  • The Worker Population Ratio (WPR), was 32.4 and in the previous quarter it was 34.0; in the corresponding quarter of 2020 it was 28.4.
Periodic Labour Force Survey-

It is India’s first computer-based survey launched by the NSO in 2017. It essentially maps the state of employment in the country. In doing so, it collects data on several variables such as the level of unemployment, the types of employment and their respective shares, the wages earned from different types of jobs, the number of hours worked etc. Before PLFS, the National Sample Survey Office (NSSO)- previous name of NSO used to bring the data related to employment and unemployment based on its quinquennial (every 5 year) household socio-economic survey programme.

The reports are released on a quarterly as well as annual basis.  The quarterly reports cover only urban areas whereas the annual report covers both urban and rural areas.  

  • It estimates the key employment and unemployment indicators (viz. WPR, LFPR, UR) in the short time interval of three months for the urban areas only in the Current Weekly Status (CWS).
  • To estimate employment and unemployment indicators in both usual status and CWS in both rural and urban areas annually.

Various indicators

  •  Labour Force Participation Rate (LFPR)-the percentage of persons in labour force (working or seeking or available for work) in the population of all age
  • Unemployment rate -refers to the percentage of unemployed persons in the labour force. Labour force includes persons who are either employed or unemployed but seeking work.
  • Worker Population Ratio (WPR)-the percentage of employed persons in the population.

Activity Status

  • Usual Status: The activity status determined on the basis of the reference period of the last 365 days preceding the date of survey, it is known as the usual activity status of the person.
  • Current Weekly Status (CWS): The activity status determined on the basis of a reference period of the last 7 days preceding the date of survey is known as the current weekly status (CWS) of the person).
economy Unemployment rate