The unemployment rate for individuals aged 15 years and above in urban areas has dipped marginally to 6.4% in the October-December quarter of 2024, according to the latest data from the National Sample Survey Office (NSSO).
This slight decrease from the previous quarter’s 6.5% reflects a steady trend in the labor market, as highlighted in the 25th Periodic Labour Force Survey (PLFS).
The survey provides a comprehensive overview of the employment landscape, shedding light on various aspects such as labor force participation, gender disparities, and the impact of technological advancements on job creation.
Labor Force Participation and Employment Trends
The labor force participation rate (LFPR) in urban areas for individuals aged 15 years and above increased to 50.4% in the October-December quarter.
This is up from 49.9% in the same quarter a year ago.
This rise indicates a growing number of people actively seeking employment or engaged in economic activities.
The LFPR remained steady at 50.4% compared to the preceding July-September quarter of 2024.
The worker population ratio (WPR) for males aged 15 years and above in urban areas also saw an increase.
It rose from 69.8% in October-December 2023 to 70.9% during the same period in 2024.
This upward trend suggests an improvement in job opportunities and economic participation among men in urban areas.
Gender Disparities in Unemployment Rates
The survey highlights notable gender disparities in unemployment rates.
The unemployment rate among females aged 15 years and above in urban areas declined to 8.1% in the October-December quarter of 2024, down from 8.6% in the same quarter a year ago.
This decrease reflects a positive trend in female employment, although the rate remained higher than that of males.
Among males, the unemployment rate in urban areas remained flat at 5.8% in the October-December quarter of 2024, compared to the same quarter a year ago.
The rate was slightly higher at 5.7% in the preceding July-September quarter of 2024. These figures indicate a relatively stable employment scenario for men in urban areas.
Impact of Technological Advancements
Technological advancements, particularly in the fields of artificial intelligence (AI) and automation, have played a significant role in shaping the employment landscape.
The survey reveals that 98% of companies rely on existing service providers for AI and GenAI capabilities, embedding AI-specific clauses in outsourcing contracts.
This trend underscores the growing importance of technology in driving economic activities and job creation.
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