India’s unemployment holds at 5% in September: PLFS
- India’s unemployment rate held at 5% in September, per the PLFS.
- Urban unemployment rose to 6.9% from 6.8% in August.
- Urban women had the highest rate, at 9.2%.
- Labour force participation was 55.5% overall and 34.6% for women.
NEW DELHI, INDIA — India’s unemployment rate held at 5% in September for a second straight month, as better rural numbers offset stubbornly high joblessness in cities. Urban unemployment edged up to 6.9%, and women in cities faced the highest rate of any group at 9.2%.
Rural gains, urban strain
The rate for people aged 15 and above was 0.2 percentage points lower than in September last year, according to the Periodic Labour Force Survey (PLFS) monthly bulletin released on Oct. 15, as reported by Forbes India. Unemployment had peaked at 5.5% in May and June before easing.
Rural areas drove the improvement. The rural rate was 4.2%, down from 4.6% a year earlier, though up slightly from 4.1% in August. Urban joblessness was 6.9%, against 6.8% both in August and a year ago.
Women in cities hit hardest
The female unemployment rate fell to 5.2% from 5.5% a year earlier, led by a sharp decline among rural women. Their rate dropped 0.4 percentage points year on year to 3.9%.
Urban women remain the most affected group. Their unemployment rate rose to 9.2% in September from 8.9% in August, though it is marginally below the 9.3% recorded a year ago. Overall, the female rate edged up to 5.2% from 5.1% in August.
Among men, the overall rate was unchanged from August at 4.9%. Rural male unemployment fell to 4.4% from 4.7%, while urban male unemployment eased marginally to 6% from 6.1%.
A gap that persists
Urban unemployment continues to run well above the rural level. Labor force participation was 55.5% overall, and 34.6% for women, leaving women’s participation more than 20 percentage points below the overall rate.
The steady headline rate hides two different job markets. In rural areas, unemployment is lower than a year ago, while in cities the rate is unchanged from a year ago and has crept up for women.
For employers hiring in Indian cities, the figures show a sizable pool of urban job seekers, women in particular. Companies building remote work teams in India, or hiring through an employer of record (EOR), can compare partners on the top BPO companies worldwide list.
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