Urban joblessness declines to 7.6% in Apr-Jun 2022: NSO

Urban joblessness declines to 7.6% in Apr-Jun 2022: NSO

Subject: Economy

Section: Unemployment

Context:

The unemployment rate for person saged 15 years and above in urban areas declined to 7.6 per cent during April-June 2022 against 12.6 per cent a year ago, the National Statistical Office (NSO) said on Wednesday.

• The PLFS further showed that joblessness among females (aged 15 years and above) in urban areas declined to 9.5% in April-June 2022 as against 14.3% a year ago. It was 10.1% in January March this year
• Among males, the unemployment rate in urban areas dipped to 7.1% in April-June 2022 compared to 12.2% a year ago. It was 7.7% in January-March 2022
• Joblessness or unemployment rate is defined as the percentage of unemployed persons among the labour force.
• The rate was high in April-June 2021, mainly due to the staggering impact of Covid-related restrictions in the country. The latest data—based on a periodic labour force survey, underlining a decline in unemployment rate a mid improved labour force participation ratio —signal a sustained economic recovery from the pandemic impact.
• According to the 15th Periodic Labour Force Survey (PLFS), the unemployment rate for people aged 15 years and above in January-March was 8.2 percent in urban areas. The survey further showed that joblessness among females (aged 15 years and above) in urban areas declined to 9.5 percent in April June 2022 as against 14.3 per cent a year ago. It was 10.1 per cent in January-March this year. Among males, the unemployment rate in urban areas dipped to 7.1 per cent in April June 2022 compared to 12.2 per cent a year ago. It was 7.7 per cent in January-March 2022.
• The PLFS further show that labour force participation rate in CWS (Current Weekly Status) in urban areas for persons aged 15 years and above increased to 47.5 percent in April-June 2022, from 46.8 percent in the same period a year ago. It was 47.3 percent in January-March.

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).