India’s unemployment rate stood at 5.1 percent in April, according to the country’s first-ever monthly Periodic Labour Force Survey (PLFS) report. Youth unemployment, or the jobless rate of those aged between 15 and 29, stood at 13.8 percent. Urban areas recorded higher joblessness at 6.5 percent. In other words, 14 out of every 100 youth cannot find work. Individuals in this age bracket are usually first-time entrants to the labour force, which is why this metric is a critical indicator of the overall employment scenario. Given that over half the population is under 30, a persistent high youth unemployment rate suggests the economy struggles to generate enough entry-level, skilled jobs. April’s headline unemployment rate was also slightly higher than the 4.9% recorded in 2024, but the government insists that the figures aren’t comparable due to different sampling methodologies. Lastly, the survey pegged the labour force participation rate (LFPR), or the share of people either working or actively seeking work, at 4.2 percent in April.
The monthly jobs data has been the missing link. However, it now offers a real-time assessment of employment trends and will significantly help policy intervention. Interestingly, the National Statistics Office has also revamped the methodology for monthly surveys and is using a rotational panel sampling design, which involves visiting each selected household four times over four consecutive months. Currently, PLFS provides only quarterly labour market indicators for urban areas. This will change with the first quarterly bulletin of PLFS covering both rural and urban areas coming out in August. Moving forward, the annual PLFS survey data will also be released on a calendar year basis, i.e., survey period of January-December, replacing the current practice of a July-June reporting cycle. This change, along with the unit-level data, will facilitate comprehensive analysis of labour market performance and employment scenario in all geographies and throughout the year.
Amid the prevailing global macro-economic challenges, India’s employment landscape is under pressure, with urban joblessness notably higher than national averages. If the high unemployment rate is one pressing concern, data accuracy is another. Long criticised for producing controversial job data, the government has come a long way and has improved the survey design and methodologies. That said, it’s also essential to ensure that the survey data remains accurate, timely, and reliable.