Unemployment rate at 12.6% in April-June 2021: NSO survey

Unemployment rate for persons of age 15 years and above in urban areas dipped to 12.6 per cent in April-June 2021 from 20.8 percent in the same month of the previous year, showed a periodic labour force survey by the National Statistical Office (NSO).

Joblessness or unemployment rate (UR) is defined as the percentage of unemployed persons in the labour force.

The joblessness was high in April-June in 2020 mainly due to the impact of lockdown restrictions in the country which were imposed to curb the spread of deadly coronavirus.

The unemployment rate for persons of age 15 years and above in January-March 2021 was 9.3 per cent in urban areas, the 11th Periodic Labour Force Survey (PLFS) showed.

It also showed that unemployment rate among females (age 15 years and above) in urban areas also declined to 14.3 per cent in April-June 2021 from 21.1 per cent a year ago. It was 11.8 per cent in January-March 2021.

Among males, the UR in urban area also dipped to 12.2 per cent in April-June 2021 compared to 20.7 per cent a year ago. It was 8.6 per cent in January-March 2021.

Labour force participation rate in CWS (current weekly status) in urban areas for persons of 15 years of age and above was 46.8 per cent in the April-June quarter of 2021, up from from 45.9 per cent in the same period a year ago. It was 47.5 per cent in January-March 2021.

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.

NSO launched PLFS in April 2017. On the basis of PLFS, a quarterly bulletin is brought out giving estimates of labour force indicators namely UR, Worker Population Ratio (WPR), Labour Force Participation Rate (LFPR), distribution of workers by broad status in employment and industry of work in Current Weekly Status (CWS).

The estimates of unemployed persons in CWS give an average picture of unemployment in a short period of seven days during the survey period.

In the CWS approach, a person is considered unemployed if he/she did not work even for one hour on any day during the week but sought or was available for work at least for one hour on any day during the period.

Labour force according to CWS is the number of persons either employed or unemployed on an average in a week preceding the date of survey. LFPR is defined as the percentage of population in the labour force.

WPR (in percent) in CWS in urban areas for persons of age 15 years and above stood at 40.9 per cent in April-June 2021, down from 36.4 per cent in the same period a year ago. It was 43.1 per cent in January-March, 2021.

Ten quarterly bulletins corresponding to the quarter ending December 2018 to the quarter ending March 2021 have already been released.