Latest jobs data shows fall in unemployment

India's unemployment rate fell to 6.4% in the quarter ended December, the lowest in the quarter since 2017-18, showing both quantitative and qualitative improvement, according to the data from the latest round of the Periodic Labour Force Survey (PLFS) for the quarter ending December 2024, which was published by the National Statistical Office (NSO) on Tuesday.

- Abhishek Jha

A closer reading of the data shows that not only is the unemployment rate falling, even the quality of jobs is improving compared to what it was a year ago. While unemployment rates are at an all-time low, the qualitative improvement still has to cover some distance to reach pre-pandemic levels. To be sure, quarterly PLFS data are only published for urban areas and results for rural labour markets will be published with the annual PLFS report, which follows a July-June calendar.

Urban unemployment rate in the quarter ending December 2024 was 6.4%, lowest for this quarter—quarterly labour market statistics can vary because of seasonality—since the PLFS was launched in 2017-18. This number was 6.5% in the quarter ending December 2023 and has been falling every year since 2021-22.