India's unemployment rate declined to 7.2 per cent in July-September this year for persons aged 15 years and above in urban areas compared to 9.8 per cent last year, according to the latest Periodic Labour Force Survey released by the National Statistical Office (NSO) on Thursday. The latest data underlines a decline in the unemployment rate amid an improved labour force participation ratio and points towards a sustained economic recovery from the pandemic, reported by the PTI. In July-September 2021, joblessness was high due to Covid-related restrictions in the country.


The 16th Periodic Labour Force Survey (PLFS) also showed that the unemployment rate for persons aged 15 years and above in April-June 2022 was 7.6 per cent in urban areas. The unemployment rate is defined as the percentage of unemployed persons in the labour force. 


The data showed that the unemployment rate among females (aged 15 years and above) in urban areas was down to 9.4 per cent in July-September, 2022 from 11.6 per cent a year ago. It was 9.5 per cent in April-June, 2022. Among males, the unemployment rate in urban areas declined to 6.6 per cent in July-September 2022 compared to 9.3 per cent a year ago. It was 7.1 per cent in April-June 2022.


For persons aged 15 years and above in urban areas, the labour force participation rate in CWS (Current Weekly Status) increased to 47.9 per cent in the July-September quarter of 2022, from 46.9 per cent in the same period a year ago. It was 47.5 per cent in April-June 2022. CWS is determined on the basis of a reference period of the last seven days preceding the date of the survey.


Labour force refers to the part of the population which supplies or offers to supply labour for pursuing economic activities for the production of goods and services and, therefore, includes both employed and unemployed persons.


Worker Population Ratio (WPR) in CWS in urban areas for persons aged 15 years and above stood at 44.5 per cent in July-September, 2022, up from 42.3 per cent in the same period a year ago. It was 43.9 per cent in April-June, 2022.


The PLFS was launched in April 2017 by NSO. PLFS quarterly bulletin gives estimates of the labour force with indicators such as unemployment rate, Worker Population Ratio (WPR), Labour Force Participation Rate (LFPR), and distribution of workers by broad status in employment and industry of work in CWS.