India's Unemployment Rate Drops from 6% to 3.2%, Says Minister

India's Worker Population Ratio (WPR), a key indicator of employment, has seen a substantial increase over the past seven years, rising from 46.8% in 2017-18 to 58.2% in 2023-24, Union Minister of State for Labour and Employment, Shobha Karandlaje, reported in the Rajya Sabha on Thursday.

Additionally, the Unemployment Rate (UR) for individuals aged 15 years and above has dropped from 6% to 3.2% during the same period, indicating a positive shift in the country's employment status, as per the Minister’s written response.

The Ministry of Labour and Employment collects the data on Employment and Unemployment through the Annual Periodic Labour Force Survey (PLFS), which has been conducted by the Ministry of Statistics and Programme Implementation since 2017-18. The survey takes place annually from July to June. State-wise WPR data is available on the Ministry's official website.

According to the Minister, the Annual Survey of Unincorporated Sector Enterprises (ASUSE) has shown a rise in the number of workers in the unincorporated non-agricultural sector, increasing from 9.79 crore in 2021-22 to 10.96 crore in 2022-23. The ASUSE survey specifically focuses on manufacturing, trade, and other services sectors.

In a further sign of the formalisation of India’s job market, Karandlaje noted that over 7 crore net subscribers have joined the Employees' Provident Fund Organisation (EPFO) between September 2017 and September 2024.

The Minister also referenced data from the Reserve Bank of India (RBI) which shows that employment in the country grew to 64.33 crore in 2023-24, up from 47.15 crore in 2014-15, marking an increase of 17.18 crore over the nine-year period. The figures are based on the KLEMS (Capital, Labour, Energy, Materials, and Services) database, which provides all-India employment estimates.

Shobha Karandlaje highlighted that generating employment and improving employability remain top priorities for the government. To achieve this, various ministries and departments, including those of Micro, Small and Medium Enterprises, Rural Development, Finance, and Electronics and Information Technology, are implementing several schemes aimed at boosting job creation. Key initiatives include the Prime Minister's Employment Generation Programme (PMEGP), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), and Pradhan Mantri Mudra Yojana (PMMY).

Additionally, in the 2024-25 Union Budget, the government announced a Rs. 2 lakh crore package aimed at providing employment, skill development, and other opportunities for 4.1 crore youth over the next five years.