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Indian job market: Unemployment eases to 5.2% in July; rural areas drive improvement

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India’s unemployment rate eased to 5.2% in July, from 5.6% in June, according to the government’s latest labour force survey, released on Monday.The Periodic Labour Force Survey (PLFS), conducted by the Ministry of Statistics and Programme Implementation (MoSPI), showed that the unemployment rate in May had also stood at 5.6%.Data collected under the current weekly status (CWS) framework revealed that joblessness for persons of all ages was at 5.2% in July.The pace of unemployment among men was slightly higher at 5.3% compared to 5.1% for women, PTI reported.In urban areas, the unemployment rate inched up to 7.2% in July from 7.1% in June. In contrast, rural areas saw an improvement, with the rate falling to 4.4% from 4.9% in the previous month.Among young people aged 15 to 29, joblessness declined to 14.9% in July from 15.3% in June. However, in urban areas, unemployment in this group rose marginally to 19% from 18.8% a month earlier. Rural areas recorded a sharper drop, with the figure down to 13% from 13.8%.CWS refers to the activity status of individuals based on a reference period of the seven days prior to the survey date.The survey also highlighted an improvement in labour market participation. The Labour Force Participation Rate (LFPR) for all age groups rose to 41.4% in July from 41% in June. In rural areas, LFPR increased to 42% from 41.5%, while in urban areas it edged up to 40.1% from 39.8%.The Worker Population Ratio (WPR), which measures the proportion of employed people among the total population, also showed gains. In rural areas, WPR among persons aged 15 years and above rose to 54.4% in July from 53.3% in June. For the same age group in urban areas, WPR stood at 47% in July. The overall national WPR improved to 52% from 51.2%.To ensure more frequent and detailed labour market indicators, the sampling methodology of PLFS has been revamped since January 2025. At an all-India level, 7,519 first-stage sampling units were surveyed in July, according to PTI.In total, 89,505 households were covered: 49,355 in rural areas and 40,150 in urban areas. The number of persons surveyed was 3,79,222, comprising 2,16,832 from rural areas and 1,62,390 from urban areas.

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