The unemployment rate in India stabilized at 4.8 percent in December 2023, per fresh government data, providing a snapshot of a labor market gradually healing from COVID-19 scars.
Breaking it down, the urban unemployment stood at 5.1 percent, marginally higher than rural areas’ 4.6 percent. Female participation rates improved notably, reaching 37 percent, up from 32 percent a year ago, thanks to schemes promoting women-led enterprises.
Sector-wise, construction and agriculture absorbed significant labor, offsetting slowdowns in textiles. The PLFS quarterly bulletin reveals that worker-to-population ratio climbed to 58.2 percent, indicating more people joining the workforce.
Yet, underemployment looms large, with many stuck in low-productivity jobs. The government’s push for gig economy platforms and startup ecosystems is addressing this by creating flexible opportunities.
Analysts from RBI and IMF commend the trend but warn of inflationary pressures impacting hiring. With GDP growth projected at 7 percent, expectations are high for further declines.
This report isn’t just numbers—it’s a testament to policy efficacy and economic vitality, setting the stage for inclusive growth in the coming year.
