NEW DELHI: India’s unemployment rate among people aged 15 years and above fell marginally to 4.9% in 2024, from 5.0% in 2023, according to the Periodic Labour Force Survey (PLFS) released on Wednesday by the ministry of statistics and programme implementation. The data suggest slight improvements in employment opportunities across the country.
Rural vs urban trends
The overall decline was driven by a modest drop in rural unemployment, which eased from 4.3% to 4.2%. Both rural men and women saw marginal improvements. However, urban unemployment held steady at 6.7%, with male unemployment rising from 6.0% to 6.1%, offset by a notable drop in female unemployment from 8.9% to 8.2%.
Labour force participation & workforce ratios
At the all-India level, the Labour Force Participation Rate (LFPR) — the share of people either working or looking for work — stayed mostly stable at 56.2%. However, under the Principal and Subsidiary Status (PS+SS) approach, LFPR showed a slight dip from 59.8% in 2023 to 59.6% in 2024.
In urban areas, LFPR rose:
- For men: 74.3% to 75.6%
- For women: 25.5% to 25.8%
- Overall: 50.3% to 51.0%
Meanwhile, the Worker Population Ratio (WPR) — the share of the working population — also remained largely stable:
- At the national level: 53.4% to 53.5%
- In urban areas: 47.0% to 47.6%
- Under PS+SS: 58.0% to 57.7%, indicating a marginal decline
Rural female workforce sees shift
A significant contributor to the dip in rural female participation was the decline in unpaid helpers in household enterprises, which fell from 19.9% in 2023 to 18.1% in 2024. This shift affected both LFPR and WPR among rural women, suggesting fewer were engaged in traditional informal roles within family-run businesses.
Minor rise in broader unemployment
Interestingly, while the PLFS shows a 4.9% unemployment rate among persons aged 15 and above, the broader all-India unemployment rate under PS+SS rose slightly from 3.1% to 3.2%, indicating a mixed employment landscape when measured across different metrics.
Despite these variations, the government data points to relative stability in India’s labour market, with small improvements and persistent structural shifts in gender and rural-urban dynamics.
