India’s unemployment rate decreased to a six-year low in the financial year July 2022 to June 2023 to 3.2%, according to the latest annual Periodic Labour Force Survey (PLFS) released by the National Statistical Office (NSO).

Further data from government of India showed that the unemployment rate in urban areas decreased from 7.6% in April-June 2022 to 6.6% in April-June 2023 for persons of age 15 years and above. For males, it decreased from 7.1% to 5.9% during this period and for female, it decreased from 9.5% to 9.1% during this period.

Meanwhile, the labour force participation rate in urban areas increased from 47.5% in April-June 2022 to 48.8% in April-June 2023 for persons of age 15 years in above. While it hovered around 73.5% for male during this period, for female, the rate increased from 20.9% to 23.2% during this period.

The Worker Population Ratio (WPR), defined as the percentage of employed persons in the population, showed that urban areas increased from 43.9% in April-June 2022 to 45.5% in April-June 2023 for persons of age 15 years in above. For males, it increased from 68.3% to 69.2% during this period and for female, it increased from 18.9% to 21.1% during this period.

During FY23 (the year to June 2023), the unemployment rate in both rural and urban areas declined to 2.4% and 5.4%, respectively, from 3.2% and 6.3%, respectively, in FY22.

According to the Business Standard, the rural labour force participation rate in the survey stood at 60.8%, significantly up from 57.5% in FY22. Its urban equivalent saw an increase to 50.4% from 49.7% in the corresponding period.