{"id":37618,"date":"2023-10-10T02:59:48","date_gmt":"2023-10-09T21:29:48","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=37618"},"modified":"2025-04-23T00:01:38","modified_gmt":"2025-04-22T18:31:38","slug":"unemployment-rate-drops-to-66-in-urban-areas-in-q1","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/unemployment-rate-drops-to-66-in-urban-areas-in-q1\/","title":{"rendered":"Unemployment rate drops to 6.6% in urban areas in Q1"},"content":{"rendered":"<h2>What\u2019s in today\u2019s article?<\/h2>\n<ul>\n<li>Why in News?<\/li>\n<li>Periodic Labour Force Survey (PLFS)<\/li>\n<li>Meaning of Unemployment<\/li>\n<li>How the Unemployment Rate is Measured?<\/li>\n<li>Highlights of the quarterly bulletin of PLFS<\/li>\n<\/ul>\n<h2>Why in News?<\/h2>\n<ul>\n<li>According to the quarterly bulletin of PLFS released by the Ministry of Statistics and Programme Implementation (MoSPI), urban unemployment rate in April-June (the first quarter\/Q1 of this fiscal) fell to 6.6%.<\/li>\n<li>Despite the fact that the urban unemployment rate was at its lowest since the PLFS bulletin was launched, nearly 14 states had a higher urban unemployment rate than the national average.<\/li>\n<\/ul>\n<h2>The Periodic Labour Force Survey (PLFS)<\/h2>\n<p><strong>About:<\/strong><\/p>\n<ul>\n<li>PLFS was launched by the National Statistical Office (NSO) in <strong>2017<\/strong>, considering the importance of availability of labour force data at more frequent time intervals.<\/li>\n<li>The first annual report (conducted during July 2017-June 2018), was brought out by NSO on the basis of PLFS and released in 2019.<\/li>\n<\/ul>\n<p><strong>Objectives:<\/strong><\/p>\n<ul>\n<li>To estimate the <strong>key employment and unemployment indicators<\/strong> (for example, Labour Force Participation Rate, etc) in the<strong> short time interval of 3 months<\/strong> for the urban areas only in the Current Weekly Status (CWS = 7 days preceding date of the survey).<\/li>\n<li>To estimate employment and unemployment indicators in both usual status and CWS in both rural and urban areas <strong>annually<\/strong>.<\/li>\n<\/ul>\n<p><strong>Key employment and unemployment indicators of PLFS:<\/strong><\/p>\n<ul>\n<li><strong>Labour Force Participation Rate (LFPR):<\/strong> It is defined as the percentage of persons in the labour force (working or seeking or available for work) in the population.<\/li>\n<li><strong>Worker Population Ratio (WPR): <\/strong>It is defined as the percentage of employed persons in the population.<\/li>\n<li><strong>Unemployment Rate (UR):<\/strong> UR is defined as the percentage of persons unemployed among the persons in the labour force.<\/li>\n<li><strong>Activity Status: <\/strong>The activity status of a person is determined on the basis of the activities pursued by the person during the specified reference period.\n<ul>\n<li><strong>Usual Status: <\/strong>Usual activity status is determined on the basis of the reference period of the last 365 days preceding the date of survey.<\/li>\n<li><strong>Current Weekly Status (CWS): <\/strong>Labour force according to CWS is the number of persons either employed or unemployed on an average in a week preceding the date of survey.<\/li>\n<li>Usual status unemployment rates will always be lower than CWS rates because there is a greater probability that an individual would find work over a year as compared to a week.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Meaning of Unemployment<\/h2>\n<ul>\n<li>According to the International Labour Organisation (ILO), <strong>unemployment means being out of a job<\/strong>; being available to take a job; and actively engaged in searching for work.<\/li>\n<li>Therefore, an individual who has lost work but does not look for another job is not unemployed. <strong>Thus, unemployment is not synonymous with joblessness.<\/strong><\/li>\n<\/ul>\n<h2>How the Unemployment Rate is Measured?<\/h2>\n<ul>\n<li>The unemployment rate is measured as the <strong>ratio of the unemployed to the labour force.<\/strong>\n<ul>\n<li><strong>The labour force <\/strong>is defined as the sum of the employed and the unemployed.<\/li>\n<li>Those neither employed nor unemployed such as students and those engaged in unpaid domestic work are considered out of the labour force.<\/li>\n<li><strong>For example, <\/strong>in the US, the employment-to-population ratio (EPR) in 2019 was 60.8, while the unemployment rate was 3.7%. In 2022, the EPR was 60, but the unemployment rate had fallen to 3.6%.<\/li>\n<li>Even though there were fewer jobs (as a proportion of the total population), the unemployment rate was lower because many individuals had exited the labour force.<\/li>\n<\/ul>\n<\/li>\n<li><strong>The unemployment rate could also fall<\/strong> if an economy is not generating enough jobs, or if people decide not to search for work.<\/li>\n<\/ul>\n<p><strong>Highlights of the quarterly bulletin of PLFS in the Urban Areas:<\/strong><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/vajiram-prod.s3.ap-south-1.amazonaws.com\/unemployment_rate_19034b34ab.png\" alt=\"unemployment rate\" \/><\/p>\n<ul>\n<li><strong>LFPR for persons of age 15 years and above<\/strong> in CWS ranged from 46.2 to 47.8% during the <strong>pre-pandemic period<\/strong>.\n<ul>\n<li>LFPR during April-June 2023 was <strong>48.8%<\/strong> which is higher than the LFPR observed in the quarters covered in the pre-pandemic period.<\/li>\n<\/ul>\n<\/li>\n<li><strong>WPR for persons of age 15 years and above<\/strong> in CWS ranged from 41.8 to 44.1% during the pre-pandemic period.\n<ul>\n<li>WPR during April-June 2023 was <strong>45.5%<\/strong> which is higher than the WPR observed in the quarters covered in the pre-pandemic period.<\/li>\n<\/ul>\n<\/li>\n<li><strong>The Unemployment Rate<\/strong> (for persons of age 15 years and above in CWS) during April-June 2023 was <strong>6.6%<\/strong> is lower than the unemployment rates observed in the quarters covered in the pre-pandemic period (7.8 to 9.7%).<\/li>\n<li>Employment of both males and females, however, increased in <strong>self-employed categories<\/strong> such as own account worker, helper in household enterprise.<\/li>\n<li><strong>States\/UTs which recorded higher than national average<\/strong> unemployment rate included Himachal Pradesh (13.8%), Rajasthan (11.7%), Chhattisgarh (11.2%), etc.<\/li>\n<li><strong>States\/UTs which posted a lower-than-national average<\/strong> unemployment rate were Delhi (2.7%), Gujarat (2.8%), West Bengal (4.4%), Bihar (6.1%), etc.<\/li>\n<\/ul>\n<hr \/>\n<h3>Q.1) What is the Aatmanirbhar Bharat Rojgar Yojana (ABRY)?<\/h3>\n<p>ABRY was launched in 2020 to stimulate the creation of new job opportunities by extending financial support to employers of establishments registered with the Employees&#8217; Provident Fund Organisation (EPFO).<\/p>\n<h3>Q.2) Which are the top sectors that generate employment in India?<\/h3>\n<p>Construction, trade, miscellaneous services, transport and storage, and education have created the most jobs in the post-liberalisation era in India.<\/p>\n<hr \/>\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/economy\/unemployment-rate-drops-to-6-6-in-urban-areas-in-q1-8975481\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Unemployment rate drops to 6.6% in urban areas in Q1<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PLFS is an estimate of the key employment and unemployment indicators such as the labour force participation rate, etc<\/p>\n","protected":false},"author":5,"featured_media":37619,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-37618","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/37618","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=37618"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/37618\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/37619"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=37618"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=37618"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=37618"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}