While female unemployment rates remain higher than men (8.4% vs. 5.7%), there is a steady decline over time. “The decline in youth unemployment is higher for females than for males, portraying an acceleration towards an inclusive workspace,” the report said.
Overall youth unemployment both fell between Q3:2023 and Q3:2024, with largest decline recorded for female youth, according to the tracker based on findings of the Periodic Labour Force Survey (PLFS).
India’s labour force participation rate and worker population ratio in urban India both reached an all-time high in Q3 of 2024. The labour market conditions began to improve in Q3 of 2024 after a modest slowdown in Q2 of 2024.
There is a positive and significant association between changes in labour market conditions and changes in non-farm output. This finding implies that PLFS does a pretty good job of tracking the changes happening in the real economy.
The report also noted that out of every 10 urban workers, 5 are salaried employees, 4 are self-employed and 1 is a casual labourer. There was a notable shift towards salaried employment for both male and female workers.
“Nominal wage growth has barely kept pace with the inflation rate, implying that real wages have been flat over the past six years. Despite significant differences in the level of nominal wages across states, there is no sign of convergence – indicating perhaps the limited level of mobility of workers across state borders,” the report highlighted.
