Employment Rates rise in FY24

1. In July 2024, Reserve Bank of India (RBI) in its recent data indicates a significant improvement in India's employment rate, rising by 6% in FY24 compared to 3.2% in FY23.
2. This marks a positive development in the labour market.

Periodic Labour Force Survey (PLFS) The latest quarterly bulletin of the Periodic Labour Force Survey (PLFS), published by the Ministry of Statistics and Programme Implementation (MoSPI) in May 2024, highlights a decline in the unemployment rate (UR) in urban areas.

Insights from RBI Data on Employment Growth in India

1. Overall Employment Rate: The RBI's India KLEMS database, which tracks Capital (K), Labour (L), Energy (E), Material (M), and Services (S), reports that total employment in India increased to 57.75 crore in 2022-23, up from 56.56 crore in 2021-22.
2. This database consists of 27 industries and provides estimates at both broad sectoral and all-India levels, covering Gross Value Added, Labour Employment, Capital Stock, and inputs like Energy, Material, and Services.

Female Employment Trends

1. The unemployment rate for women saw a significant reduction, falling from 9.2% in January–March 2023 to 8.5% in January–March 2024.
2. Additionally, the worker population ratio (WPR) for women in urban areas increased from 20.6% in January–March 2023 to 23.4% in January–March 2024, indicating a rising trend in female workforce participation.

Citigroup Report Citigroup's report expressed concerns that even with a 7% GDP growth rate, India might face challenges in generating sufficient employment due to its demographic advantage. The report raised issues regarding the quality of jobs and potential underemployment, particularly noting that agriculture, which employs 46% of the workforce, contributes less than 20% to the GDP. Labour Ministry’s Response Positive Employment Data: The Ministry of Labour and Employment countered Citigroup's claims by referencing comprehensive employment data from the Periodic Labour Force Survey (PLFS) and RBI’s KLEMS. Creation of Employment Opportunities: The Ministry highlighted that over 8 crore employment opportunities were generated between 2017-18 and 2021-22, with an average of more than 2 crore jobs annually. EPFO Subscribers: Additionally, more than 6.2 crore net subscribers were added to the Employees’ Provident Fund Organisation (EPFO) from September 2017 to March 2024.

About Periodic Labour Force Survey Quarterly Bulletin (January-March 2024)

1. Periodic Labour Force Survey (PLFS) provides key estimates related to employment and unemployment, including the Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR).
2. It also measures the activity status of individuals based on 'Usual Status' and 'Current Weekly Status.'
3. The National Sample Survey Office (NSSO) initiated the PLFS in April 2017.
4. The survey aims to provide timely estimates of employment and unemployment indicators in urban areas on a quarterly basis and offers annual estimates for both rural and urban areas.

Key Findings

1. Unemployment Rate (UR): In urban areas, the unemployment rate for individuals aged 15 years and above slightly declined from 6.8% in January–March 2023 to 6.7% in January–March 2024.

1. The female unemployment rate dropped from 9.2% in January–March 2023 to 8.5% in the same period in 2024.

2. Labour Force Participation Rate (LFPR): The Labour Force Participation Rate in urban areas for individuals aged 15 years and above increased from 48.5% in January–March 2023 to 50.2% in January–March 2024.

1. The female LFPR in urban areas also showed an upward trend, rising from 22.7% in January–March 2023 to 25.6% in January–March 2024.

3. Worker Population Ratio (WPR): There was an increase in the Worker Population Ratio for individuals aged 15 years and above in urban areas, from 45.2% in January–March 2023 to 46.9% in January–March 2024.

1. The female WPR in urban areas improved, moving from 20.6% in January–March 2023 to 23.4% in January–March 2024.

Indicator	Definition
Labour Force Participation Rate (LFPR)	Percentage of persons in the labor force (i.e., working or seeking or available for work) in the population.
Worker Population Ratio (WPR)	Percentage of employed persons in the population.
Unemployment Rate (UR)	Percentage of persons unemployed among the persons in the labor force.
Activity Status - Usual Status	Determined based on the activities pursued by the person during the last 365 days preceding the date of the survey.
Activity Status - Current Weekly Status (CWS)	Determined based on the activities pursued by the person during the last 7 days preceding the date of the survey.

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