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India's Urban Unemployment Rate Fell To 9.8% In July-September 2021: Labour Force Survey

The unemployment rate in urban areas for persons aged 15 years and above fell in July-September 2021.

<div class="paragraphs"><p>Lower Parel area of Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)</p></div>
Lower Parel area of Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

India's urban unemployment rate fell in July-September 2021, while labour force participation and worker population rose.

Unemployment in urban areas fell to 9.8% in the July-September quarter from 12.6% in April-June, according to the government's Periodic Labour Force Survey released on Tuesday.

A total of 5,676 urban blocks were surveyed, according to a statement by Ministry of Statistics and Programme Implementation issued on Tuesday. The survey covered 44,272 households and 1,71,405 persons in urban areas.

Unemployment rate refers to the percentage of unemployed people among those working, seeking employment or available for work.

Key Highlights (QoQ)

  • Unemployment rate in urban areas for persons aged 15 and above fell compared with the April-June quarter, which was impacted by the second wave of Covid-19.

  • Unemployment rate for men fell to 9.3% in July-September from 12.2% in the prior quarter.

  • Unemployment rate for women fell to 11.6% from 14.3%.

Labour Force Participation Rises

Labour force participation or the percentage of persons in the labour force marginally rose.

LFPR in urban areas for persons aged 15 years and above rose by one basis point, with more men entering the workforce. The labour force participation for men rose to 73.5% in July-September from 73.1% in the preceding quarter.

However, for women, LFPR fell to 19.9% from 20.1%.

Overall, labour force participation rose to 46.9% from 46.8%.

Worker Population Ratio Up

The worker population ratio or the percentage of employed people in the population rose to 42.3% in July-September from 40.9% in the prior quarter.

The male worker population rate rose to 66.6% versus 64.2%.

For females, it rose to 17.6% from 17.2% in the previous quarter.

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