Long-Term Unemployment Declines In India Even As Monthly Data Shows Seasonal Variations

New Delhi, Jan 30 (KNN) India’s unemployment rate has declined steadily over recent years, even as short-term monthly data shows marginal fluctuations linked to seasonal factors.

Responding to questions in Parliament on Thursday, Minister of State for Labour and Employment Shobha Karandlaje said that official employment and unemployment data are collected through the Periodic Labour Force Survey (PLFS), conducted by the Ministry of Statistics and Programme Implementation (MoSPI).

Long-Term Trends Show Improvement

According to the latest available Annual PLFS reports, the unemployment rate (UR) on a usual status basis for persons aged 15 years and above declined from 6.0 per cent in 2017–18 to 3.2 per cent in 2023–24.

For youth aged 15–29 years, the unemployment rate fell from 17.8 per cent to 10.2 per cent during the same period.

Employment indicators also improved. The Worker Population Ratio (WPR) rose from 46.8 per cent to 58.2 per cent for persons aged 15 years and above, while for youth it increased from 31.4 per cent to 41.7 per cent between 2017–18 and 2023–24.

Monthly Data Shows Seasonal Variations

MoSPI revamped the PLFS from January 2025 to release monthly employment data. Based on the Current Weekly Status (CWS), the unemployment rate stood at 5.1 per cent in August 2025 and 5.2 per cent in September 2025.

During the same period, rural unemployment increased from 4.3 per cent to 4.6 per cent, while urban women’s unemployment rose from 8.9 per cent to 9.3 per cent. The ministry noted that such changes are influenced by seasonal and short-term factors and do not necessarily indicate long-term trends.

Support for Unorganised and Gig Workers

The minister highlighted the e-Shram portal, launched in August 2021, to create a national database of unorganised workers and provide them with a Universal Account Number (UAN). In October 2024, e-Shram was upgraded into a one-stop platform to improve access to social security schemes.

So far, 14 central government schemes have been integrated with e-Shram, including health insurance, housing, employment guarantee, pension, and welfare programmes. The platform is also linked with job, skill development, and pension portals.

Framework for Gig and Platform Workers

She also highlighted the government’s efforts to address the growing gig economy through the Code on Social Security, 2020, which came into force on November 21, 2025. 

The law formally defines gig and platform workers and provides for welfare schemes covering health, maternity, disability, and old-age protection. A dedicated Social Security Fund has also been proposed to finance these benefits.

Government’s Position

The minister said that while short-term employment indicators may fluctuate, long-term PLFS data reflects improved employment outcomes and increased workforce participation. 

(KNN Bureau)