The labour force participation rate (LFPR) reached its highest level at 50.4%, according to the Periodic Labour Force Survey (PLFS) for July-September 2024 released by the ministry of statistics and programme implementation (MoSPI).
It’s a time when fresh recruits are hired by companies, which explains the uptick, said Madan Sabnavis, chief economist at Bank of Baroda. There is demand as indicated by the PMI (Purchasing Managers Index) readings, which stayed above 50 during this period, suggesting a higher labour intake, he added.
Male and female unemployment rates declined to 5.7% and 8.4%, respectively, in July-September 2024 for those aged 15 and above.
Jammu & Kashmir had the highest unemployment rate at 11.8%, followed by Odisha (10.6%), Bihar (10.4), Kerala (10.1%), Rajasthan (8.9%), and Himachal Pradesh (8.7%). The PLFS surveyed 45,005 households and 170,598 people for the July-September round.
The male LFPR reached a record of 75%, while the female LFPR was at 25.5%, marginally lower than 25.6% recorded in January-March 2024. Overall, the LFPR was 50.1% in the first quarter of 2024-25 and 49.3% in Q2 of 2023-24.Nearly half of the workforce were regular wage/salaried employees, followed by self-employed (39.9%) and casual labour (10.7%).Among the self-employed, 32.6% were own-account workers or employers, and 6.2% worked as a helper in household enterprises.
More than half of female workers were regular wage or salaried employees, although this share decreased slightly from 54% in the quarter before, data showed. On the other hand, 47.9% among males were regular wage or salaried employees.
Women’s participation has increased within self-employment, mainly as helpers in household enterprises. “It shows that more enterprises are coming up,” Sabnavis explained.
Among 22 states/UTs, 13 had a higher LFPR than the national average, with Himachal Pradesh leading at 61.8%, followed by Gujarat (53.9%), West Bengal (53.8%), Telangana (53.5%), Assam (53.2%), and Maharashtra (52.8%).
The youth (15-29 years) LFPR was 41.6% in July-September, with 59.8% for males and 21.9% for females. On the other hand, youth unemployment rate was 15.9%, with 14.2% for males and 21% for females.
Rising women employment
More women are joining the workforce, unemployment rates are falling, and incomes are steadily rising across categories, according to a release by the ministry of labour and employment on Monday.
The PLFS data shows that female LFPR has increased from 23.3% in 2017-18 to 41.7% in 2023-24. Rural participation rose by 23 percentage points, “indicating a rising contribution of women to rural production”, the release noted.
The unemployment rate dropped from 5.6% to 3.2% during the same period.
Among women with postgraduate degrees and above, workforce participation rose from 34.5% in 2017-18 to 39.6% in 2023-24. Additionally, 23.9% of women with higher secondary education and 50.2% with primary level education are part of the workforce.
However, education and domestic responsibilities remain significant factors keeping women outside the workforce. While 37.94% of females cited education as their reason, reflecting a focus on higher qualifications, 43.04% pointed childcare and homemaking commitments as barriers.