Business is slow in the city, yet there is peace in the village… these figures have increased the tension!
December brought some disappointment on the employment front. According to government data, the national unemployment rate rose marginally to 4.8%. Worryingly, the job crisis has worsened in cities compared to rural areas. While the situation remains stable in rural areas, the unemployment rate has risen in urban areas.
Signs of concern have emerged once again regarding the job and employment situation in the country. The unemployment rate registered a slight but significant increase in December.
According to government data, the unemployment rate among people aged 15 and above rose to 4.8 percent, up from 4.7 percent in November. While this figure may seem small, in a country with a huge population, it means millions of people are struggling to find work.
Unemployment hits cities, while rural conditions remain stable
According to the Periodic Labour Force Survey (PLFS) report released by the Union Ministry of Statistics and Program Implementation, the real employment crisis is not in the villages, but in the glittering cities.
According to the data, while the unemployment rate in rural India remained stable at 3.9 percent, in urban areas it jumped from 6.5 percent to 6.7 percent.
This is having a direct impact on everyday urban life. Amid rising inflation and cost of living in cities, this job crisis could pose new challenges for middle-class families.
This month was also a difficult one for urban men, as their working-age population ratio (WPR) fell from 70.9 percent to 70.4 percent.
What the statistics for women and men say
While overall unemployment has increased, the unemployment rate among urban women has declined from 9.3 percent to 9.1 percent, indicating that urban women are now more actively seeking employment than before.
On the other hand, rural women have also demonstrated their strength. The working population ratio (WPR) of rural women has increased from 38.4 percent to 38.6 percent.
This means that rural women are increasing their participation in agriculture or local industries. This is a positive sign for the rural economy.
The queue of people seeking work grew long.
To understand the health of the economy, it's important to look not only at the unemployment rate but also at the labor force participation rate (LFPR).
This rate measures how many people are willing to work or are looking for work. In December, the rate increased from 55.8 percent to 56.1 percent. This means that more people are leaving their homes and seeking work.
According to the survey, the number of people seeking work has increased in rural areas (59%), while it has declined slightly in urban areas (50.2%). This report, based on a survey of approximately 3.73 lakh people, attempts to gauge the pulse of the country.
The government has also stated that the method of calculating the PLFS has been changed from January 2025 to ensure more accurate employment data in the future.