Urban Unemployment Drops To 6.4% In Q2 FY25, Lowest Since 2018

2024-11-19 02:09:58

(MENAFN- KNN India) New Delhi, Nov 19 (KNN) Urban unemployment in India dropped to 6.4 per cent in the July-September quarter of FY25, its lowest since the launch of the Periodic Labour Force Survey (PLFS) in April 2018, according to data released by the Ministry of Statistics on Monday.

This marks a decline from 6.6 per cent in the same period last year and Q1 FY25. Analysts attribute this improvement to heightened economic activity and a surge in public and private investments in Q2.

NR Bhanumurthy, director of the Madras School of Economics, highlighted that increased capital expenditure (capex) by the Centre and states contributed significantly to job creation in urban areas.“The first quarter (of FY25) saw a decrease in capex due to elections, which corrected in Q2,” he noted.

During Q2, central capex rose to Rs 2.3 trillion, compared to Rs 2.1 trillion in Q2 FY24 and Rs 1.8 trillion in Q1 FY25. Meanwhile, states' combined capex reached Rs 1.5 trillion, up from Rs 0.8 trillion in Q1 FY25.

The labour force participation rate (LFPR) climbed to 50.4 per cent in Q2 FY25 from 49.3 per cent in Q2 FY24, while the worker population ratio (WPR) increased to 47.2 per cent from 46 per cent. Both metrics represent the highest levels recorded in any quarter.

Further analysis showed improvements in job quality. The share of regular wage or salaried jobs rose to 23.1 per cent in Q2 FY25 from 22 per cent in the year-ago period, while self-employment rates also increased.

Former Chief Statistician Pronab Sen noted that these trends suggest a recovery among micro, small, and medium enterprises (MSMEs), which were severely impacted by the COVID-19 pandemic.

Unemployment among men dropped to 5.7 per cent in Q2 FY25 from 6 per cent in Q2 FY24, while for women it fell to 8.4 per cent from 8.6 per cent. The survey covered 45,005 households and 170,598 individuals, using a reference period of the previous seven days to assess employment status.

This robust performance underscores India's economic resilience and the crucial role of public investment in driving urban job growth.

(KNN Bureau)

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