Unemployment Rate in India - November Analysis
The National Statistics Office (NSO) released data showing a decline in India's monthly unemployment rate to 4.7% in November, the lowest in eight months. This improvement is attributed to the strong rural job market fueled by rabi sowing activities.
Rural and Urban Unemployment
- The unemployment rate in rural areas for individuals aged 15 and above dropped to 3.9% from 4.4% in the previous month.
- Urban areas saw a decrease in the jobless rate from 7% to 6.5% during the same period.
Current Weekly Status (CWS) Methodology
- The CWS determines activity status based on the previous week's reference period.
- An individual is deemed unemployed if they did not work for at least one hour on any day during the reference week but were available for work.
Gender-specific Unemployment Rates
- The unemployment rate for men decreased from 5.1% to 4.6%.
- The rate for women fell from 5.4% to 4.8%.
- This is the lowest monthly unemployment rate recorded by the PLFS since April 2025.
Labour Force Participation Rate (LFPR)
- The LFPR increased slightly to 55.8% in November from 55.4% in October.
- Rural LFPR rose to 58.6%, while urban LFPR saw a slight decline to 50.4%.
- Rural female LFPR showed a steady increase, reaching 39.7% in November.
- Urban female LFPR remained stable around 25.5%.
Worker Population Ratio (WPR)
The WPR, indicating the proportion of employed individuals among those seeking work, increased to 53.2% in November from 52.5% in October.
Labour Market Trends
The data suggests strengthening labour market conditions, supported by rural employment gains, increased female participation, and gradual urban labour demand recovery.
PLFS Sampling Methodology
The NSO revamped the PLFS sampling method from January 2025 to estimate key employment and unemployment indicators monthly using the CWS method for both rural and urban areas.
